ACCT 001 Lecture Notes - Lecture 4: Deferred Tax, Book Value
21 Jun 2020
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Ppe are tangible assets that are held for use, and are expected to be used during more. Includes purchase price, directly attributable costs, costs of dismantling. Aasb 116 allows a choice of two possible measurement models: than one period. Frequency of revaluations is not specified, but it must be performed with sufficient regularity such that the ca of assets is not materially different from their fv. Step 2: record the revaluation increase in other comprehensive income (oci) Step 3: record the tax effect of the revaluation. When we increase ca of an asset, we have created a ttd, because ca > tb. In this case, we need to record a dtl. Step 4: transfer the net gain to equity. Step 2: record the revaluation decrease as an expense in profit and loss. We have changed ca of the asset, which creates a tax effect. In this case, ca is reduced, creating a dtd and dta.
