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No items had previously required revaluation. In the tax jurisdiction in which the company operates revaluations of assets do not affect the tax base of an asset or taxable profit. Gains due to revaluations are taxable on sale.
What does these statements mean and what implications do they have. What will be the effect on taxable temporary difference of this information.
The company began development of a new product during the year and capitalised 60000 in accordance with Ias 38 intangible assets. The expenditure was deducted for tax purposes as it was incurred. None of the expenditure had been amortised by the year end. What does the statements that the expenditure was deducted for tax purposes as it was incurred and none of the expenditure had been amortised by the year end mean and what implication do they have and what will be the impact of this information when calculating taxable temporary difference. Why the taxable temporary difference for development expenditure be 60000On the revaluation, it is saying that the tax base is not adjusted for the revaluation.
On the intangible, the CV is 60,000 and the tax base is nil as the expenditure has been deducted for tax purposes.
What does tax base not adjusted for revaluation mean and will this have any impact on taxable temporary difference
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