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Dear Mike,
As i know when a revaluation occurs we should make calculation for deferred tax on the revaluation, but in some questions there wasn’t any calculation. In cases, where there were any statements such as: “deferred tax on revaluation is not included” or “there are taxable temporary differences of 10000 and 8000 relate to revaluation”, there was a calculation! if the question does not says that deferred tax should be calculated in respect of revaluation, i won’t calculate deferred tax on revaluation?
Thanks!
Correct, but Steve Scott says ( more often than not ) “Ignore the deferred tax implications on the revaluation” If he wants you to deal with the deferred tax “technically correctly” he will normally indicate how much of the deferred tax movement relates to the revaluation.
Hope that helps
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