chandsingh

I consulted with many people in accounting field but no one agreed to those statements in this example. I am very disappointed that CFAI has not responded to this issue until now, maybe they don’t have the rationales supporting their statements in this example at all.
One more fundamental question :
If the revaluation of the building resulted in a tax provision of 120K, a revaluation surplus of 180K and a DTL of 16K whereas the carrying amount of the building (an asset) was increased by 240K (from 900K to 1140K), would the left side and the right side of 2006 balance sheet be equal ?