When finalising its 2025 accounts, Quoline discovers that a liability of 120,000, which arose in 2023, was never recognised; the related expense will be deductible when paid and the deferred tax asset is recoverable (case data), at a rate of 30 %. Compute the tax effect and the net decrease in opening equity of the earliest period presented.
- Omitted liability
- 120,000
- Tax rate
- 30 %