A litigation provision of 80,000, required as early as the end of 2023 given the information available, was omitted by Grenvale; the earliest period presented is 2024. The expense will be deductible when paid and the deferred tax asset is recoverable at a rate of 25 % (case data). Record the opening entries.
- Omitted provision
- 80,000
- Tax rate
- 25 %