CERTYNEX IFRS ACADEMY

Pirtara allocates its tax paid in proportion to each activity’s result (60% operating, 40% investing), without being able to link the flows to specific transactions, and does not disclose the total. What is the error?

Without identification, tax paid stays operating; any allocation requires the total.

The 60/40 key must be replaced by 50/50.

There is no error, allocation in proportion to the profit of each activity being permitted with no further disclosure.

All tax must be classified as investing.