Question
Company had opening deferred tax liability (DT
- L ₹50,000. Due to tax rate change enacted after reporting date, DTL must be remeasured to ₹45,000. The remeasurement effect is generally recognised in:
Solution
The effect of a change in tax rates on deferred tax is recognized in profit or loss, except to the extent it relates to items previously recognized outside profit or loss (in OCI or equity).
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