Revalued assets will therefore now require deferred tax to be recognised on any revaluation gains or losses. Deferred tax being increased for all property revaluations including investment properties Under FRS 102 deferred tax must now be provided on all revaluations of property. For acquisitions since 1 January 2014 (assuming a 31 December year-end), review the acquisition accounting required under FRS 102 and assess the goodwill and deferred tax adjustments required. Where assets have been revalued, FRS 102 requires that deferred tax is recognised on all timing differences. WATCH FOR DEFERRED TAX TRAPS WITH FRS 102 Published on June 29, 2017 June 29, 2017 • 13 Likes • 4 Comments They may, however, be adopted for periods commencing on or after 1 January 2015. A company which previously discounted deferred tax will see an increase in the deferred tax charge, as FRS Revalued assets: FRS 102 requires that deferred tax be recognised on all timing di#erences whether arising in pro"t or loss, other comprehensive income, or equity. Under old GAAP, website development costs were classed as property, plant and equipment whereas under FRS 102 they will now be classed as intangible assets. What will the impact be? FRS 102, s 29 sets out the recognition, measurement, presentation and disclosure requirements for both current and deferred tax. [FRS 102.29.11] In the Balance Sheet, a Deferred Tax liability is required to be presented within ‘provisions for liabilities’ and a Deferred Tax asset to be presented within ‘debtors’. ... FRS 102 requires deferred tax to be recognised on the fair value movement. Under the previous version of FRS 102, intangible assets need to be recognised if they arise from legal or contractual rights, or are separable (i.e. Consider whether work-loads can be reduced given the new requirement for impairment reviews to only be performed once impairment indicators exists. Under Section 18, the residual value is assumed to be zero whereas under old GAAP a residual value could be assigned if it could be measured reliably with the exception of goodwill which was considered to be nil. It will impact the recognition of goodwill, intangible assets, deferred tax, valuation of investment properties and financial instruments, to name just a few. Revalued assets will therefore now require deferred tax to be recognised on any revaluation gains or losses. Under current UK GAAP, deferred tax was only recognised on revalued property if it was intended to be sold. Introduction. Deferred Tax Deferred tax is now required to be recognised on the revaluation of assets, including goodwill, intangible assets, and fair value adjustments on acquisition. There are no fundamental changes to the recognition of intangibles, but the definitions for recognition and measurement have been revised. Organisation of FRS 102 (vi) FRS 102 is organised by topic with each topic presented in a separate numbered section. On transition to FRS 102, you will have to recognise the deferred tax liability in respect of any past rolled over gains. Deferred tax assets are recognised only to the extent that recovery is probable. (viii) This edition of FRS 102 issued in March 2018 updates the edition of FRS 102 issued in FRS 102 requires disclosure of estimates relating to the amount of net reversals of deferred tax assets and liabilities expected to occur during the following accounting period. 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