IAS 12 Income Taxes

**Section A** PropInvest owns an investment property measured at fair value under IAS 40. The property was purchased for $2 million. At the year-end, its fair value has increased to $2.8 million. The local tax authority does not tax unrealized gains on investment properties until they are sold. The corporate tax rate is 25%. How should the deferred tax consequence of this revaluation be accounted for in the financial statements?