The matching concept is so important to understand. It underpins why we both charge depreciation but also why we account for deferred tax - as this video explains!
Жүктеу.....
Пікірлер: 5
@ansumanakamara93892 жыл бұрын
Tom, thank you for upgrading my accounting knowledge
@colmfoley55832 жыл бұрын
Hi Tom. Great video as always. Thank you. Question for you on the video - In relation to revaluation gain, is the journal entry for deferred tax liability on a reval gain Cr Deferred Tax Liability and Debit Revaluation Reserve?
@tomclendonaccasbronlinelec7226
Жыл бұрын
Yes it is. That is matching the tax with the gain.
@colmfoley5583
Жыл бұрын
So is it correct to say for items which affect profit or loss, the deferred tax effect will also be taken to profit or loss (e.g. an accrued expense which allowable for tax purposes when paid in a future period...Debit Deferred Tax Asset, Cr Tax Expense) However, for an item such as a first time revaluation gain which is accounted for through OCI, the deferred tax effect is also accounted for through OCI by debiting reval reserve
Пікірлер: 5
Tom, thank you for upgrading my accounting knowledge
Hi Tom. Great video as always. Thank you. Question for you on the video - In relation to revaluation gain, is the journal entry for deferred tax liability on a reval gain Cr Deferred Tax Liability and Debit Revaluation Reserve?
@tomclendonaccasbronlinelec7226
Жыл бұрын
Yes it is. That is matching the tax with the gain.
@colmfoley5583
Жыл бұрын
So is it correct to say for items which affect profit or loss, the deferred tax effect will also be taken to profit or loss (e.g. an accrued expense which allowable for tax purposes when paid in a future period...Debit Deferred Tax Asset, Cr Tax Expense) However, for an item such as a first time revaluation gain which is accounted for through OCI, the deferred tax effect is also accounted for through OCI by debiting reval reserve
@tomclendonaccasbronlinelec7226
Жыл бұрын
@@colmfoley5583 what you say is true