In case at an year end CA – TB = 1,00,000 on which DTL @ 30% is = 30,000, at the same year end revaluation was done @ 2 lakh on which DTL@ 30% equals 60000 which will be made through OCI therefore the journal entries shall be the following
OCI Reserve A/C Dr 60,000
To DTL 60,000
DTL a/c Dr 30,000
To P&L A/c 30,0000
Query 1: The logic behind crediting P&L is if revaluation wouldn’t have happened CA- TB would have been such that DTA would have been created & PL would have been credited by 30,000
(The above logic is based on what I think coz I did the calculation without revaluation also)
Query cum Case 2: CA(1,08,000) – TB(6,40,000) = 3,60,000 on which DTL @ 1,08,000 out of which prior period DTL standing is 30,000 so this year’s dtl = 78,000 now if we do a revaluation upward by 2 lakh DTL on which from OCI = 60,000 and balance DTL created through P&L = 18,000. Next Year there is an impairment loss of 1,75,000 we would adjust it by revaluation reserve , this year’s CA- TB = 1,88,000 on which DTL = 56,400
Now we do
PL (B.F) 900
DTL a/c DR (1,08,000-56,400) 51,600
To OCI (1,75,000*30%) 52,500
Why the balance figure is going to PL ???
Hi Rishav
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