Where the carrying amount of a non-current asset is more than its fair value at the date of acquisition,the difference is reflected in the deferred tax liability in the business combination valuation entries.

Question

Quizplus · Accepted Answer

The difference between the carrying amount and fair value of a non-current asset at acquisition is not directly reflected in deferred tax liability; it affects the calculation of deferred tax based on temporary differences and applicable tax rates.

Where the Carrying Amount of a Non-Current Asset Is More