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CIMAPRA19-F02-1 Exam - Topic 2 Question 111 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 111
Topic #: 2
[All CIMAPRA19-F02-1 Questions]

AB has taxable temporary differences arising from the revaluation of non current assets.

What is the journal entry to record the movement in the provision for deferred taxresulting from this difference?

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Suggested Answer: A

by Shawn at May 05, 2025, 03:51 PM

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Lavina
4 months ago
I think it depends on the specific tax rate applied.
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Sherman
4 months ago
Wait, are we sure it’s a deferred tax asset? Could be a liability, right?
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Hortencia
4 months ago
Totally agree, that’s how I learned it too!
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Nana
4 months ago
Yeah, it’s definitely a liability if it’s taxable temporary differences.
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Tracey
4 months ago
The journal entry typically involves debiting the deferred tax asset and crediting the income tax expense.
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Patrick
5 months ago
I think the entry might involve both a debit and a credit, but I’m confused about which accounts to use for the revaluation difference.
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Demetra
5 months ago
I feel like we need to credit the provision for deferred tax, but I can't recall if it should be a specific percentage of the revaluation.
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Georgeanna
5 months ago
I remember a similar practice question where we had to adjust the deferred tax liability instead. Could it be the same here?
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Mariann
5 months ago
I think the journal entry should involve debiting the deferred tax asset, but I'm not entirely sure about the exact amounts.
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Elfriede
6 months ago
This looks straightforward, but I want to double-check my understanding. The journal entry should involve a debit or credit to the provision for deferred tax account, depending on the movement in the deferred tax liability. I'll work through it step-by-step to make sure I get it right.
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Tamekia
6 months ago
I'm a little confused on the specifics of how to record the journal entry here. I know it has something to do with the provision for deferred tax, but I'm not sure of the exact debits and credits. I'll need to review my notes on deferred tax accounting.
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Lucy
6 months ago
I've got this! The key is to remember that the revaluation of non-current assets creates a taxable temporary difference, so I'll need to record a deferred tax liability and adjust the provision for deferred tax accordingly.
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Kirby
6 months ago
Hmm, I'm a bit unsure about this one. Deferred tax can be tricky, and I want to make sure I understand the correct journal entry. Let me re-read the question carefully.
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Sherill
6 months ago
Okay, this looks like a straightforward deferred tax question. I'll need to think through the journal entry to record the movement in the provision for deferred tax resulting from the revaluation of non-current assets.
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Thurman
10 months ago
This question is so easy, it's almost insulting. Option C, no brainer. Although, I do wonder if the revaluation was done in a way that would make the exam question more interesting. Gotta keep us on our toes, you know?
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Iola
9 months ago
Yeah, it does seem pretty straightforward. But you never know, they might throw in a twist.
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Candra
9 months ago
I agree, option C is the correct choice.
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Alberto
10 months ago
Option B? Really? What is this, amateur hour? Option C all the way, baby. Bring on the deferred tax!
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Daniel
10 months ago
Option C is the way to go, no doubt about it. Although, I'd be more concerned about the revaluation of the assets than the deferred tax movement. Priorities, people!
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Mariann
10 months ago
I think Option B is correct because it reflects the proper treatment of deferred tax for revalued assets.
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Erasmo
10 months ago
I'm gonna go with Option A. It's the least boring option, and that's what really counts, right?
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Larue
8 months ago
User 4: Option A it is then, let's record the journal entry.
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Nida
8 months ago
User 3: I agree, let's go with Option A.
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Laquita
9 months ago
User 2: Yeah, Option A seems like the most interesting choice.
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Shasta
9 months ago
Yeah, Option A is definitely the most interesting option.
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Bernardine
9 months ago
User 1: I think Option A is the way to go.
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Margurite
9 months ago
I agree, Option A seems like the best choice.
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Stephanie
10 months ago
I think Option A is the way to go.
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Rosio
10 months ago
Why do you think it's Option B?
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King
10 months ago
Option B seems like the obvious choice to me. Gotta love those deferred tax movements!
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Rosann
10 months ago
Yes, Option B is the most appropriate journal entry for this situation involving taxable temporary differences.
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Scarlet
10 months ago
I agree, Option B is the correct choice for recording the movement in the provision for deferred tax.
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Mariann
11 months ago
I disagree, I believe it should be Option B.
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Lezlie
11 months ago
Hmm, this is a tricky one. I think Option C is the way to go, but I'm not 100% sure.
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Lezlie
10 months ago
User 4: I agree, let's confirm the correct option before proceeding.
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Micaela
10 months ago
User 3: Let's review the journal entry together to make sure.
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Malika
10 months ago
User 2: I'm not sure, maybe we should double check.
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Lauran
10 months ago
User 1: I think Option C is correct.
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Rosio
11 months ago
I think the journal entry should be Option A.
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