Real Estate
Deferred Tax on Revaluation Surplus
Recording the deferred tax liability arising from an upward revaluation of an investment property.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Revaluation Surplus (OCI) | Equity (-) | 32,000.00 | - |
| Deferred Tax Liability | Liability (+) | - | 32,000.00 |
💡 Accountant's Note
A property revaluation surplus is a temporary difference between accounting value and tax base. Under IAS 12, a deferred tax liability must be recognized for the tax that will eventually be paid when the property is sold.
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