malbec

S2000magician, following an upward revaluation of 300, we would indeed see assets go up by 300, the DTL increase by 120 but the reamaining 180 would be taken to revaluation surplus within equity (via O.C.I). Under IFRS, the revaluation surplus would be stated net of the deferred tax effect which the revaluation gives rise to.
Alpha668, I read this example in the book, but I really don’t get what they are trying to do there??? It seems to suggest that we do not recognise the DTL on the revaluation.