FREE ACCA BOOKS F7 KAPLAN TEXT BOOK 2021-2022 - ACCA BOOKS Lsbf Video Lectures Free Download

As seen in Chapter 2, FREE ACCA BOOKS F7 KAPLAN TEXT BOOK 2021-2022 - ACCA BOOKS Lsbf Video Lectures Free Download it is permissible to revalue non­current assets to represent their fair value. When a revaluation takes place the carrying amount of the asset will change but the tax base will remain unaffected.{googleads}

The difference between the carrying amount of a revalued asset and its tax base is an example of a temporary difference and will give rise to a deferred tax liability or asset, which will be taken to the revaluation surplus (and OCI), free download for pdf rather than the statement of profit or loss.

Application to scenarios Revaluation of non­current assets Deferred tax should be recognised on revaluation gains even where there is no intention to sell the asset or rollover relief is available on the gain-free accounting books.

The revaluation of non­current assets results in taxable temporary differences, and so a liability. This is charged as a component of other comprehensive income (alongside the revaluation gain itself). FREE ACCOUNTING BOOKS It is therefore disclosed either in the statement of profit or loss and other comprehensive income or in a separate statement showing other comprehensive income 

Tax losses

Where unused tax losses are carried forward, FREE ACCA BOOKS F7 KAPLAN TEXT BOOK 2021-2022 - ACCA BOOKS Lsbf Video Lectures Free Download a deferred tax asset can be recognised to the extent that taxable profits will be available in the future to set the losses against.

If an entity does not expect to have taxable profits in the future it cannot recognise the asset in its own accounts.{googleads}

If, however, the entity is part of a group and may surrender tax losses to other group companies, a deferred tax asset may be recognised in the consolidated accounts.

The asset is equal to the tax losses exam preparation & tutoring expected to be utilised multiplied by the tax rate.FREE ACCA BOOKS F7 KAPLAN TEXT BOOK 2021-2022 - ACCA BOOKS Lsbf Video Lectures Free Download