CERTYNEX IFRS ACADEMY

Arquevin's current tax liability for an uncertain treatment includes 120,000 for 20X1 and 90,000 for 20X2. In 20X5, the authority's right to re-examine 20X1 expires without an audit. Which treatment applies?

Release the whole liability (210,000), since the authority audited no year.

Change nothing until all years are time-barred.

Release 120,000 in 20X5, as a change in estimate, and keep 90,000.

Restate the 20X1 financial statements to remove the original liability.