Tetra Corp, an IFRS reporter, has the deferred tax assets and liabilities presented below:

Classification on the Balance Sheet
Deferred Tax Associated with Item
Excess of warranty expense over warranty deductions
$65,000 Asset
Accelerated depreciation for tax purposes
$75,000 Liability
Installment sales receivable
$35,000 Liability
Contingent liability
$25,000 Asset

What amount will the company report for the net current and non-current deferred taxes?

A) net current deferred tax asset $55,000; non-current deferred tax liability $75,000
B) $20,000 non-current deferred tax asset
C) $20,000 non-current deferred tax liability
D) Companies do not net deferred taxes under IFRS.

Answer: C
Explanation: C) Under IFRS, all deferred tax items are classified as non-current: 65,000 + 25,000 – 75,000 – 35,000