Taxable loss to carried forward of 7k @ 18% = Def Tax Asset of 1.2k
Difference between NBV and TWDV is 8.8k more on the balance sheet @ 18% = Def Tax Liability of 1.6k
Does this therefore mean that DT must be provided in the account of 0.4k?
Replies (6)
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You have two different items giving rise to DT balances. As I understand your DTA is due to historical or current tax losses that you expect to recoup in the near future so you book an asset at £1.2k. However, your DTL is may be due to excess capital allowances claimed due to different treatment in accounting Vs tax treatment for assets. I would show the DTL separately and not net these and show only the net liability position. I'm aware that under US GAAP it is allowed to net off and show only the net position.
I disagree. You show one deferred tax liability figure, which is £400,000.
I vote the same as John.
johngroganjga wrote:
I disagree. You show one deferred tax liability figure, which is £400,000.
I vote the same as John.
I’ve seen both, but would probably consolidate, obvs with WPs showing the makeup.