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Deferred tax at acquisition

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Deferred tax at acquisition

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by AvatarP2-D2.
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  • February 5, 2023 at 8:30 pm #678381
    Avatarcoop
    Participant
    • Topics: 29
    • Replies: 45
    • ☆☆

    Good day.
    It is understood that deferred tax on asset gains at acquisition is deducted from assets when goodwill is calculated.
    But It is not understood when preparing the consolidated F.O.P for that year, the deferred tax on depreciation of these revaluation gains is also deducted from net assets, as the tax on expense considered revenue not expense.
    Is there explanation for that?
    thanks.

    February 5, 2023 at 8:35 pm #678386
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    You will not see this at this level, where deferred tax and group accounts are kept apart. You will see this as part of SBR, so maybe post the query there.

    Thanks

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