SDDS Wiring-Guide

For pricing purposes only. In general, under different GAAPs, deferred tax assets and liabilities are measured at the nominal statutory tax rate. The manner in which the vehicle expects to realise deferred tax (for example, for investment properties through share sales rather than direct property sales) is generally not taken into consideration. 
The adjustment represents the impact on the NAV of the difference between the amount determined in accordance with the GAAP and the estimate of deferred tax which takes into account the expected manner of settlement (i.e., when tax structures and the intended method of disposals or settlement of assets and liabilities have been applied to reduce the actual tax liability).
Disclosures should include an overview of the tax structure including, for instance, details of the property ownership structure, key assumptions and broad parameters used for estimating deferred taxes for each country, the maximum deferred tax amount estimated assuming only asset sales (i.e., without taking into account the intended method of disposal) and the approximate tax rates used. 
The estimate of the amount of the adjustment required to bring the deferred tax liability related to property disposals to fair value might have a large impact on the INREV NAV. Since the tax structures may differ from vehicle to vehicle, significant judgement is required and the mechanics of the calculation methodology for this adjustment may vary from vehicle to vehicle. Other components of the overall deferred tax adjustment require less judgement and are more mechanical in nature. This adjustment should include a full assessment of the tax impact on NAV of INREV NAV adjustments. Deferred tax balances are not discounted to take into account time value of money.