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Associates and deffered tax asset

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Associates and deffered tax asset

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.
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  • Author
    Posts
  • March 2, 2017 at 11:15 pm #375199
    genty
    Member
    • Topics: 27
    • Replies: 33
    • ☆☆

    Greetings Mike

    What is the risk when dividends are received from the associate? And the accounting for it.

    When is deffered tax asset recognised?

    March 3, 2017 at 7:40 am #375234
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23368
    • ☆☆☆☆☆

    “What is the risk when dividends are received from the associate?” – I’ve no idea!

    Possibly the dividend is not paid by the associate out of distributable profits and is therefore illegal?

    Possibly wrong accounting? (Dr Cash, Cr Investment Income)

    Maybe inaccurate calculation by the associate?

    “When is deffered tax asset recognised?”

    Very rarely!

    When the tax written down value of an asset exceeds the carrying value of that asset

    OK?

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