Deferred tax on revaluation

also i want to ask whenever there's a gain in revaluation, we should always account for the deferred tax calculation? in: First, OCI gain on property (-) DT on gain Second, SOCE - Revaluation surplus Thirdly, DTax T account 1. Adjust the transfer amount: - Cr if gain - Dr if deficit 2. C/f DTL figure (current TTD + gain) x Tax rate)

I dont know why in acca textbook doesnt show (exactly) all of these fine rules and steps. There should be like a guidebook for the whole concept technique thing, like variations of situation that one should be conditioned with. If i knew 10 years ago, id just read the IFRS pocket guide book and that technique book. smh. but then again life is about "exploring" and to fail and err is human. I dont want to be human. I want to be robotic number crunching machine that thrives on algorithm, a black box with no feeling.. who also generates enough $ to improve the economic state of my family. So anyway, does the revaluation applies to all classes of asset too? revaluation of land is subject to deferred tax too right?

@aarina said: Hi for the DT on rev gain is it a must to transfer the DT to revaluation reserve in soce? To calculate the Tax expense for the year. If so, The T account of deferred tax, the credit side should be - "transfer to rev reserve - $XX" right? If its a decrease in revaluation then the DT should be on the dr side of the T account right? and (-) to soce? Rev reserve?

Hi, Yes, the deferred tax on a revaluation goes through other comprehensive income, which then feeds into the revaluation reserve in the statement of changes in equity. So if there is a revaluation increase then there is an increase in the deferred tax, hence a credit entry on the T-account. Thanks

@aarina said: also i want to ask whenever there's a gain in revaluation, we should always account for the deferred tax calculation? in: First, OCI gain on property (-) DT on gain Second, SOCE - Revaluation surplus Thirdly, DTax T account 1. Adjust the transfer amount: - Cr if gain - Dr if deficit 2. C/f DTL figure (current TTD + gain) x Tax rate)

Hi, It all looks reasonably correct, but it is going to be one of the harder aspects of the exam, so don't spend too long trying to get it 100% correct. Get the bits that you can and then move on, quickly! Thanks

@aarina said: I dont know why in acca textbook doesnt show (exactly) all of these fine rules and steps. There should be like a guidebook for the whole concept technique thing, like variations of situation that one should be conditioned with. If i knew 10 years ago, id just read the IFRS pocket guide book and that technique book. smh. but then again life is about "exploring" and to fail and err is human. I dont want to be human. I want to be robotic number crunching machine that thrives on algorithm, a black box with no feeling.. who also generates enough $ to improve the economic state of my family. So anyway, does the revaluation applies to all classes of asset too? revaluation of land is subject to deferred tax too right?

Hi, Revaluation of all PPE (including land) will give rise to additional deferred tax. With regards to being a number crunching machine........ leave that to AI and robots. Employers aren't looking for the hard skills (technical knowledge and crunching numbers) they're looking for the softer skills (communication, team player and management skills) so try to develop these a bit make yourself more employable. Thanks

Since the place where i studied acca previously was like a ****hole where there was no development of any soft skills/much less any knowledge gained... so currently im self studying, and team player skills need to be developed later. Now is more like me myself and i team. If i could wind up the clock id register myself in another school or a design school. Instead of suffering in that place for years. Okay i'm letting go of my "baggage" Sorry about yesterday. I think i had a mini emotional breakdown lol. I think im learning so much now than i ever did before. I love my life. My life is beautiful and nothing hurts (even though im cooped up in my room with a cacti plant and hundred of books, piles of papers on the floor and post its on the wall, scribblings of formula to memorize because i teach myself and because i have no real life friends but life is awesome, the sun is shining and the hills are alive with the sound of music. Anyway, thanks for the help with F7, your method pro forma for the revaluation thing is really great. Make things in order.

Glad to hear that your learning is improving. Trust me, it will all be worth it in the end!