CERTYNEX IFRS ACADEMY

Velloria recognises an impairment loss of 30,000 on an item of equipment, whose carrying amount falls from 100,000 to 70,000. The tax base of the equipment, set by tax rules, remains 100,000 (given). How are the deferred taxes relating to this equipment determined?

They are not affected: the impairment loss is a purely accounting entry with no effect on deferred tax

By comparing the original cost of the equipment with its tax base, the impairment loss being ignored for this purpose

IAS 36 sets the deferred tax directly by applying the tax rate to the amount of the loss, without reference to the tax base

Under IAS 12, by comparing the revised carrying amount of 70,000 with the tax base of 100,000