Sir i have two questions as follows:
1) Deferred tax on fair value adjustments following a business combination, how are these accounted for sir?
2) Assets/liabilities that are revalued for the purposes on an acquisition, why aren't the tax bases affected?
Ask the Tutor ACCA SBR
IAS 12 Income Taxes
7y ago#1Hi,
You only need to be aware of the deferred tax adjustments on the PURP, which is covered in the notes/videos.
The tax bases are not adjusted as the tax authorities have no evidence to be able to adjust their values.
Thanks
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