Professor Can you guide me what should I do if I have opening balance given in Trial Balance as Deferred Tax Liability and I calculated the closing balance as Deferred Tax Asset.
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IAS-12
4y ago#1Hi,
You don't do anything different to what we've done previously. The deferred tax asset is shown on the SFP and the movement shown in the SPL. Given that we are going from a deferred tax liability to a deferred tax asset the movement will give rise to a credit entry through profit or loss as we remove the liability and create the asset.
Thanks
For example, we have at Starting of year Deferred tax liability of 250 and End of year we have deferred tax asset of 150. So we will show Deferred tax Credit of 400 in PNL?
4y ago#3Correct. As to change the liability to the asset we would need to DR Deferred tax 400 CR SPL 400
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