Deferred tax liability

A taxable temporary difference commonly arises when an asset’s carrying amount exceeds its tax base. When the carrying amount is recovered, taxable amounts can exceed future tax deductions. Measure deferred tax using the applicable enacted or substantively enacted tax rate expected to apply when the difference reverses, subject to IAS 12 requirements and exceptions. Recognise the deferred tax effect consistently with the underlying transaction: a revaluation recognised in other comprehensive income commonly has its related deferred tax recognised there too.