- This topic has 1 reply, 2 voices, and was last updated 5 months ago by
P2-D2.
P2-D2.Viewing 2 posts - 1 through 2 (of 2 total)
-
Posts
-
LuxetVeritas
- Topics: 17
- Replies: 17
- ☆
how do develoment costs capitalised affect the current year’s deferred tax? what about the deferred tax?
P2-D2
- Topics: 4
- Replies: 6119
- ☆☆☆☆☆
Hi,
The development costs will be capitalised under IAS 38 for the accounting treatment but the tax authorities usually allow the costs in full as incurred, hence the tax base is zero. We should then have the carrying value being greater than the tax base, so a deferred tax liability.
Thanks
P2-D2Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.