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)?
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
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