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Journal entryAdvancedVariant — group VG.IAS8.000013Published

Question · Retrospective restatement of an error

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 %
Your answer
  1. Line 1

    Account Retained earnings

  2. Line 2

    Account Litigation provision

  1. Line 1

    Account Deferred tax asset

  2. Line 2

    Account Retained earnings

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