So, at first you think that when we recognise a def tax directly in equity !! As far as I remember when a def tax liability will not be reverse( suppose a rapidly growing company) then we adjust it in equity bcoz we have not pay that liability in future.
So in that sense business combination also be recognised in equity , similarly in case of exchange rate differences from the currency translation procedure for foreign operations.
The only problem in option c is its general PP&E jabki we actually add “revaluation of PP& E” in the equity. ( Although revaluation is not allowed under US GAAP) so question me nothing mention means we assume it’s follow IFRS.
Hope it’s help
Is option C the answer?
Yes
Can you explain
So, at first you think that when we recognise a def tax directly in equity !! As far as I remember when a def tax liability will not be reverse( suppose a rapidly growing company) then we adjust it in equity bcoz we have not pay that liability in future.
So in that sense business combination also be recognised in equity , similarly in case of exchange rate differences from the currency translation procedure for foreign operations.
The only problem in option c is its general PP&E jabki we actually add “revaluation of PP& E” in the equity. ( Although revaluation is not allowed under US GAAP) so question me nothing mention means we assume it’s follow IFRS.
Hope it’s help