Page 204 - SBR Integrated Workbook STUDENT S18-J19
P. 204
Chapter 13
To summarise:
Temporary difference × tax % = Deferred tax
P/L
OCI
Opening deferred tax
Example 2
Financial assets
On 1 April 20X1 Mintz purchased some equity shares for $5 million which it
intends to sell in the short-term. At 31 December 20X1, the fair value of the
shares is $6 million. No tax is payable on fair value gains until the shares are
sold. Mintz pays tax at 20%.
Explain the accounting treatment of the above in the year ended 31
December 20X1.
198
