CERTYNEX IFRS ACADEMY

The Jorvella group presents a single 'net' uncertainty of 50,000, obtained by grouping a 350,000 risk of rejection of transfer prices in country P and a 300,000 refund claim on a tax in country Q, 'to reflect the overall exposure'. Where is the error?

The amount: the correct net exposure is 650,000.

The principle: a group may present only one tax uncertainty per country and per year.

The calculation: the average of the two amounts should have been used.

The grouping: these treatments with no examination link must be considered separately.