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    Question

    Fair value gain on equity instruments at FVOCI (no

    recycling) creates a temporary difference. How is deferred tax treated?
    A No DTA/DTL since never recycled Correct Answer Incorrect Answer
    B DTL recognized in P&L Correct Answer Incorrect Answer
    C DTL recognized in OCI Correct Answer Incorrect Answer
    D DTA recognized in equity directly Correct Answer Incorrect Answer
    E Recognize DTL only on disposal Correct Answer Incorrect Answer

    Solution

    Deferred tax follows the underlying item; for OCI items, DT is recognized in OCI.

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