I am a bit confused with a temporary difference, im not sure of my answer
So we have a machine, carrying value 100k, on 31.12.20×0 and the fair value is 150k. Revaluation model is applied. Income tax is 30% The remaining useful life is 10 years.
So for me the diff is 45k Because under ifrs 150k – 15k ( depreciation 150/10) = 135k
Under tax rules 100k – 10k ( 100k/10) = 90
Tempo diff = 135 – 90 = 45k is this correct ?
I also thought of simply putting 150-100 but then again we have depreciation expense.
You have the carrying value of the asset correct but you need more information to calculate the tax base. What is the tax depreciation? This is applied to the original cost and is not adjusted for any revaluation to fair value.