CERTYNEX IFRS ACADEMY

Uvrelac's reconciliation (applicable rate 25%, unchanged) includes a line 'accelerated tax depreciation: −80,000', whereas the related deferred tax is recognised at the same rate. Where is the error?

The temporary difference is not a reconciling item: it is neutralised by deferred tax.

The line should have shown 80,000 as a positive amount.

The reconciliation should have covered current tax only.

The line should have been 20,000, i.e. 80,000 × 25%.