Deferred tax & revaluation of an asset Home › Forums › ACCA Forums › F7 Financial Reporting Forums › Deferred tax & revaluation of an asset New Reply This topic contains 1 reply, has 2 voices, and was last updated by captmario 3 years, 1 month ago. Viewing 2 posts - 1 through 2 (of 2 total) Author Posts November 28, 2013 at 7:28 pm viluneParticipant Hi All, Can somebody tell me when the asset is revalued (property), do we have to book deferred tax as a deferred tax liability or that “deferred tax” is booked in equity (revaluation surplus)? Thx! November 28, 2013 at 7:56 pm captmarioParticipant When asset is revalued upwards, it increases the carrying value of asset to more then tax base. which results into deffered tax liability (taxable temporary difference). However if asset is revalued downwards which decreases carrying value below tax base. it results into deffered tax asset (deductible temporary difference) someone can correct me if i am wrong 🙂 Author Posts Viewing 2 posts - 1 through 2 (of 2 total) You must be logged in to reply to this topic.