CERTYNEX IFRS ACADEMY

In Lumbrac's country, tax on distributed profits is higher than on retained profits (case data); Lumbrac therefore measures its tax at the rate for undistributed profits. What does it disclose about future dividends?

Nothing: as long as no dividend is decided, the tax issue does not arise.

The nature of the potential tax consequences, their amount where practicably determinable, and the existence of consequences that cannot be determined.

Only the total amount of additional tax, even if it is not practicably determinable.

A deferred tax liability at the distributed-profits rate, to be disclosed in the note.