11-07-2010, 05:48 AM
Temporary differences can arise on items charged directly in statement of comprehensive income (equity) and those charged through profit or loss. Both have to be seen separately and cannot be offset.
If you have deferred tax asset on all differences EXCEPT revaluation surplus (or gain on available for sale unquoted investment etc) on which you have liability; and you don't estimate to realize deffered tax asset on such (profit or loss related differences) in forseeable future, you will not recognize it. However, at the same time you will recognize deferred tax liability on items directly charged in equity as per IAS 12. These two cannot be offset.
It means, you will not be offsetting one type of deferred tax asset (not to be recognized) against the deferred tax liability of surplus/directly chargeable in equity.
Due to this, there would be no question of new treatment of incremental depreciation. Surplus would stand at 65%, deferred tax liability at 35% AND resultant incremental depreciation will be kept on treated as per section 235 (read with SRO 45).
Regards,
If you have deferred tax asset on all differences EXCEPT revaluation surplus (or gain on available for sale unquoted investment etc) on which you have liability; and you don't estimate to realize deffered tax asset on such (profit or loss related differences) in forseeable future, you will not recognize it. However, at the same time you will recognize deferred tax liability on items directly charged in equity as per IAS 12. These two cannot be offset.
It means, you will not be offsetting one type of deferred tax asset (not to be recognized) against the deferred tax liability of surplus/directly chargeable in equity.
Due to this, there would be no question of new treatment of incremental depreciation. Surplus would stand at 65%, deferred tax liability at 35% AND resultant incremental depreciation will be kept on treated as per section 235 (read with SRO 45).
Regards,
