Deferred Tax asset of acquired subsidiary

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September 21, 2017 at 4:23 pm #408219
abdulbasit16
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Sir on page 171 of bpp text in the question part b they have written that we will also debit goodwill and credit p and l by 0.9m. But i dont understand y.
September 24, 2017 at 9:33 pm #408541
P2-D2
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Hi,
I’ve not got the textbook to hand but if the deferred tax asset cannot be recognised on acquisition then it will be removed, hence the credit, and the other side taken to goodwill.
I’ll double check when I next have the textbook by my side.
Thanks
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