For entity F, you are given the following information: 

(a) Tax bases of the above assets and liabilities are the same as their carrying amounts except for: 

(b) During 2005, a building was revalued. On 1 January 2010 the revaluation reserve in respect of this building was EUR 3,000. 

(c) The following adjustments to the financial statements should be made to comply with IFRS 1 — First-Time Adoption of IFRS, on 1 January 2010:

(d) The entity is very likely to be profitable in the future. Calculate the deferred tax provision ‘as at 1 January 2010, showing the amount of the adjustment required to the deferred tax provision and any amounts to be charged to revaluation reserve. 

(Assume a tax rate of 30 per cent.)  

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Balance Sheet as at 1 January 2010 Property, plant and equipment Goodwill Intangible assets Financial assets Total non-current assets Trade and other receivables Other receivables Cash and cash equivalents Total current assets Total assets Share capital Revaluation reserve Retained earnings Total equity Interest-bearing loans Trade and other payables Employee benefits Current tax liability Deferred tax liability Total liabilities Total equity and liabilities Local GAAP m 14,000 6,000 4,000 12,000 36,000 14,000 3,200 1,400 18,600 54,600 12,000 3,000 12,260 27,260 16,000 8,000 2,000 140 1,200 27,340 54,600