Which of the Following Statements Is Correct with Respect to AASB

question 45

Multiple Choice

Which of the following statements is correct with respect to AASB 112 "Income Taxes" when a non-current asset is revalued?

• A) On revaluation date, the revaluation reserve is increased by the product of the temporary difference and the tax rate.
• B) On revaluation date, the revaluation reserve is decreased by the product of the temporary difference and the tax rate.
• C) On revaluation date, a deferred tax liability is created equal to the amount of the temporary difference.
• D) On revaluation date, a deferred tax asset is created equal to the amount of the temporary difference.
• E) None of the given answers

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