Which of the following statements is correct with respect to AASB 112 "Income Taxes" when a non-current asset is revalued?
A) On revaluation date, the revaluation reserve is increased by the product of the temporary difference and the tax rate.
B) On revaluation date, the revaluation reserve is decreased by the product of the temporary difference and the tax rate.
C) On revaluation date, a deferred tax liability is created equal to the amount of the temporary difference.
D) On revaluation date, a deferred tax asset is created equal to the amount of the temporary difference.
E) None of the given answers
Correct Answer:
Verified
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