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CIMAPRA19-F02-1 Exam - Topic 5 Question 127 Discussion

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?
A) Option
B) Option
C) Option

CIMAPRA19-F02-1 Exam - Topic 5 Question 127 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 127
Topic #: 5
[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 29, 2026, 09:10 PM

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Yong
10 hours ago
Yes, we need to show the movement clearly.
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Yuki
6 days ago
True, but I feel A covers the provision aspect better.
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Stephanie
11 days ago
Option B might be right too. It depends on the tax rate applied.
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Jennifer
16 days ago
I lean towards Option A. It seems correct for the journal entry.
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Yong
21 days ago
Agreed, the revaluation impacts tax liability.
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Yuki
26 days ago
This question is tricky. I think it's about recognizing deferred tax.
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Penney
1 month ago
Don't forget to consider the impact on future tax liabilities too!
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Clement
1 month ago
I think it depends on the specific asset revaluation method used.
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Vernice
1 month ago
Wait, are we sure about the tax rates applied here? Seems off.
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Odette
2 months ago
Totally agree, that's standard practice for deferred tax adjustments!
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Darrin
2 months ago
The journal entry usually involves debiting the deferred tax expense and crediting the deferred tax liability.
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Chanel
2 months ago
I believe the entry should reflect the increase in the deferred tax liability due to the revaluation, but I’m not confident about the exact wording of the options.
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Bobbye
2 months ago
If I remember correctly, we need to consider the tax rate when calculating the deferred tax, but I’m a bit confused about how to apply it here.
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Lisandra
2 months ago
I remember a similar practice question where we had to adjust for temporary differences, but I can't recall if it was related to revaluation or something else.
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Lemuel
2 months ago
I think the journal entry involves debiting the deferred tax expense and crediting the deferred tax liability, but I'm not entirely sure about the amounts.
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