Presentation of a deferred tax liability in the statement of financial position
On Dec 31, 01, entity E recognizes a provision relating to a lawsuit. The carrying amount of the provision is CU 26 according to IFRS and CU 34 for tax purposes.
According to IAS 12, E also recognizes a deferred tax liability in the amount of CU 2 relating to the provision (= CU 8 · E”s tax rate of 25%).
E”s lawyers think it is highly probable that the lawsuit will be settled until May 02 and that the decision of the court will be accepted by the parties to the dispute.
Required
Assess whether the deferred tax liability has to be presented as a current liability or as a non-current liability in E”s statement of financial position as at Dec 31, 01.