Deferred Tax Revaluation

Question 1

First step

Answer 1

Taxable temporary difference

Tax base net assets * income tax rate

Question 2

Second step

Answer 2

Deferred tax on revaluation

(Total revaluation of NCA * income tax rate) (Put in OCI as deferred tax on gain)

Question 3

Third step

Answer 3

Reduction in deferred tax balance

Deferred tax in TB - (Taxable temporary difference + on revaluation)

Question 4

Fourth step

Answer 4

Income tax expense in SPL

Provision for income tax - current tax over-provision in TB - reduction in deferred tax balance - deferred tax on revaluation