CERTYNEX IFRS ACADEMY

The supreme court of country X rejects, for another company, the deductibility of royalties similar to those the Estriva group deducts in country X. Estriva also deducts royalties in country Y, governed by different tax law and not covered by the decision. Which reassessment applies?

Reassess both treatments in the same way, the decision concerning royalties.

Reassess the treatment in country X; that in country Y is not affected if governed by different law.

Reassess nothing, the decision concerning another company.

Reassess only the treatment in country Y, to diversify the risk.