Velvorne never recognised a provision that should have amounted to 70,000 at the end of 2023 and 90,000 at the end of 2024. It presents 2025 and 2024; the correction gives rise to a deferred tax asset at a rate of 30 % (case data). Compute, net of tax, the 2024 opening correction, the decrease in 2024 profit and the decrease in equity at 31 December 2024.
- Provision required at the end of 2023
- 70,000
- Provision required at the end of 2024
- 90,000
- Tax rate
- 30 %