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According to IAS 12 ( deferred tax section) any gain on revaluation of PPE gives rise to a taxable temporary difference thus a deferred tax liability.
In the Statement of profit or loss, we take the movement in deferred tax as either a debit or credit as long as it’s not arising on items recognised outside profit or loss.
Now if during the year the movement in deferred tax is say an increase of USD 250,000 but the deferred tax on the gain is USD 300,000. The company has other items that affect deferred tax, but am using this in particular. How do we present this??? Do we say the entire movement goes to profit or loss as a debit or? This movement is less than the gain it’s self yet its also considered in determining the movement.
DT on revaluation would be in OCI
Balance in P&L (if it relates to P&L items)