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Deferred tax on revalued NCA

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Deferred tax on revalued NCA

  • This topic has 2 replies, 2 voices, and was last updated 7 years ago by ematete2005.
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    Posts
  • October 26, 2017 at 4:05 pm #413313
    ematete2005
    Member
    • Topics: 22
    • Replies: 64
    • ☆☆

    When a non current asset is revalued upwards, the gain is recorded in OCI and in Revaluation reserve and a deferred tax liability is recognized.

    My question is that is there any transfer to profit and loss from the revaluation reserve as the deferred tax reverses?

    Thank you.

    October 29, 2017 at 8:37 pm #413659
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7142
    • ☆☆☆☆☆

    Hi,

    There is only a reserve transfer for the revaluation and there is no transfer for the deferred tax.

    Thanks

    November 1, 2017 at 10:51 pm #414076
    ematete2005
    Member
    • Topics: 22
    • Replies: 64
    • ☆☆

    Thank you.

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