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MFRS 15 revenue recognition, deferred tax under MFRS 112, or Schedule 3 capital allowances giving you a headache? Drop your past-year problem or tutorial question in chat. You get a clear, step-by-step breakdown without the textbook confusion.
Hi Abear! I am struggling with this MFRS 112 question. Why is the tax base of the machinery different from its carrying amount after accelerated capital allowances?
10:42 PMThink of it like this: carrying amount follows book depreciation, while tax base follows LHDN tax allowances claimed under Schedule 3.
Because you claimed initial and annual tax allowances faster than depreciation, your tax base is lower than your carrying amount. That difference is a taxable temporary difference, which gives you a Deferred Tax Liability (DTL).
10:44 PMThat finally makes sense! Way clearer than my lecture slides. Thanks Abear 🙌
10:47 PM