Question

An entity recognizes a remeasurement gain from a defined benefit plan directly in OCI in the current year. Tax law in the jurisdiction allows a tax deduction for contributions only when actually paid, and there is no current tax impact this year. How should deferred tax be recognised for the OCI remeasurement gain?

Q: Answer-An entity recognizes a remeasurement gain from a defined benefit plan directly in OCI in the current...

Ind AS 12 requires deferred tax effects of items recognised in OCI to be recognised in OCI when the tax arises from the same transactionitem. Even if deduction timing differs, the tax effect of the OCI item should be presented in OCI unless specific exceptions apply.