- This topic has 1 reply, 2 voices, and was last updated 7 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘Associates and deffered tax asset’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Associates and deffered tax asset
Greetings Mike
What is the risk when dividends are received from the associate? And the accounting for it.
When is deffered tax asset recognised?
“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?