All about the accruals concept

[@ansumanakamara9389]

Tom, thank you for upgrading my accounting knowledge

[@colmfoley5583]

Hi Tom. Great video as always. Thank you. Question for you on the video - In relation to revaluation gain, is the journal entry for deferred tax liability on a reval gain Cr Deferred Tax Liability and Debit Revaluation Reserve?

[@tomclendonaccasbronlinelec7226]

Yes it is. That is matching the tax with the gain.

[@colmfoley5583]

So is it correct to say for items which affect profit or loss, the deferred tax effect will also be taken to profit or loss (e.g. an accrued expense which allowable for tax purposes when paid in a future period...Debit Deferred Tax Asset, Cr Tax Expense) However, for an item such as a first time revaluation gain which is accounted for through OCI, the deferred tax effect is also accounted for through OCI by debiting reval reserve

[@tomclendonaccasbronlinelec7226]

@@colmfoley5583 what you say is true