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Associate-Deferred Tax

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Associate-Deferred Tax

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.
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    Posts
  • August 24, 2015 at 8:38 pm #268394
    Marya
    Participant
    • Topics: 3
    • Replies: 2
    • ☆

    Hi Mike,

    When an associate makes sale to parent or parent makes sale to associate, when we reverse unrealized profit in the transaction, how do we record deferred tax asset or liability arising in the transaction.

    Thanks!

    August 24, 2015 at 11:44 pm #268412
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23303
    • ☆☆☆☆☆

    We don’t. It’s a consolidation adjustment only. The figures in the individual companies’ own financial statements won’t change

    Ok?

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