Page 49 - FINAL CFA I SLIDES JUNE 2019 DAY 8
P. 49
Session Unit 8:
30. Income Taxes
LOS 30.h: Explain recognition and measurement of current and deferred tax items., p.257
The recognition and measurement of current DTA/DTL must match the same
principles laid out in the applicable US GAAP/IFRS standard.
If, given its tax base, the currently unrealized gains on an asset will be taxed at the capital
gains rate when the asset is disposed of, that rate should be used to calculate the deferred
tanties
tax liability (Same rates for DTA and DTL)
If PPE Revaluation Gain, it is taken directly to equity, the related future tax liability
should be taken directly to equity as well.
