DTL & Revaluation Surplus

CFA Level I FRA
#1

CFAI Text Vol 3 P511~512

Anyone has a good understanding regarding those statements in last 2 paragraphs on P.511 and the subsequent 2 paragraphs on P.512 ? I just can not catch it at all !!!

What is the (deferred) tax effect ? What are the " tax provi s ion" in last paragraph on P.511 and the " revaluation reserve" in 2nd paragraph on P.512 ?

Is it that the increase in carrying amount of $300,000 in the “revaluation surplus” account under equity is allocated to tax provision ($120,000 = $300,000 x 40%) and retained earning ($180,000 = $300,000 - $120,000) ? What are those statements in 2nd paragraph mean ?

#2

Anyone can help me ?

#3

don’t have the book but i think you need to be more specific about your questions…what exactly are you not understanding?

#4

Hi, AndrewUNH :

I am very sorry I can not post those statements on the text since they quite long and with a table in it. Would you please advise your e-mail address so that I can send the scanned ones to you ?

Thank you very much !

#5

give me yours

#6

aloha668@gmail.com