Deferred Tax

Hello tutor,

I don’t understand this particular paragraph, found on Question 49, Panel Co (Dec 05) of the Kaplan kit:

”
The recognition of the deferred tax asset should be dealt with on the following basis:

(a) if the estimated or actual tax deduction is less than or equal to the cumulative recognised expense then the associated tax benefits are recognised in the profit or loss;

(b) if the estimated or actual tax deduction exceeds the cumulative recognised compensation expense then the excess tax benefits are recognised in other comprehensive income and held in a separate component of equity.
”

I cant seem to find a comparable source online to confirm this treatment.

I tried reading the BPP study text for any mention of such treatment as well but nothing came up. The only part in the study text that mentioned ‘deferred tax should be recognised in OCI’ was:

Quote: ‘Deferred tax should be charged/ credited directly to equity if the tax relates to items also charged/credited directly to equity’.

Is the treatment suggested by Kaplan revision kit a correct one?