CAF-6 · Chapter 7 · Question 7 of 15
An entity revalues its building upwards by Rs. 1 million. The tax laws do not allow this revaluation for tax purposes. Where should the related deferred tax expense be recognized?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Other Comprehensive Income (OCI)
Explanation
Deferred tax relating to items recognized in OCI (like revaluations) must also be recognized in OCI.
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