CERTYNEX IFRS ACADEMY

Korrane recognised a provision of 380,000 for a recycling levy provided for in a bill still being debated in Parliament; several amendments changing the tax base are under discussion and the vote is uncertain. What is the error?

No obligation exists: enactment of the law as drafted is not virtually certain.

The amount should have reflected the least favourable amendments.

The provision should have been presented as a tax payable.

The provision should have been limited to half the amount, as the law may ultimately not be passed by Parliament.