Consider a company reporting under IFRS that revalues PP&E upward. The revaluation gain is taken directly to equity without affecting either pretax income (on the income statement) or taxes payable (the gain is unrealized) so balance sheet deferred tax liabilities are not affected. Because the revaluation gain is taken directly to equity, the related future tax liability should be taken to equity as well. The adjustment is to reduce the amount of the gain added to revaluation surplus by the amount of the future tax liability on the revaluation gain.
I don’t see a question here.