A deferred tax asset shall be recognized for all taxable temporary differences and it is probable that accounting profit will be available against which the deductible temporary differences can be utilized. deductible temporary differences and it is probable that taxable profit will be available against which the deductible temporary differences can be utilized. deductible temporary differences and it is probable that accounting profit will be available against which the deductible temporary differences can be utilized. taxable temporary differences and it is probable that taxable profit will be available against which the deductible temporary differences can be utilized.

A deferred tax asset shall be recognized for all taxable temporary differences and it is probable that accounting profit will be available against which the deductible temporary differences can be utilized. deductible temporary differences and it is probable that taxable profit will be available against which the deductible temporary differences can be utilized. deductible temporary differences and it is probable that accounting profit will be available against which the deductible temporary differences can be utilized. taxable temporary differences and it is probable that taxable profit will be available against which the deductible temporary differences can be utilized.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 1MC: Which of the following is not a cause of a difference between pretax financial income and taxable...

See similar textbooks

Similar questions

Which of the following is not a cause of a difference between pretax financial income and taxable income in a given period? a. operating loss carryforwards b. permanent differences c. applicable tax rates d. temporary differences
Tax losses can be viewed as providing: Answer deductible temporary differences, and therefore deferred tax liabilities b.taxable temporary differences, and therefore a current tax liability c.taxable temporary differences, and therefore a current tax refund d.deductible temporary differences, and therefore a deferred tax asset
When assessing realizability of deferred tax assets, management must consider positive and negative evidence. All of the following would be considered positive evidence except ________. Group of answer choices taxable income in prior carryback year(s) if carryback is permitted under the tax law future reversals of existing taxable temporary differences an excess of appreciated asset value over the tax basis of the entity's net assets unsettled circumstances that could adversely affect future operations
TRUE OR FALSE?Under IFRS, deferred tax liability and deferred tax asset should be reported as noncurrent regardless of the reversal period.
Will the existence of unused tax losses always lead to the recognition of a deferred tax assets? Explain your answer with suitable example. Provide An excellent explanation of under what condition unused tax losses can create deferred tax assets.
Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with suitable example. The reason for the deferred tax assets and liabilities have been explained with suitable example. The concepts of temporary difference, taxable temporary difference, deductible temporary differences have been linked to DTA and DTL.
Briefly explain the recognition criteria of deferred tax assets and deferred tax liability and the concepts of temporary difference and permanent difference.
Provide one example of temporary differences that create a deferred tax asset and one example of a deferred tax liability (500)
A deferred tax liability (or asset) is described as the tax effect of the temporary difference between the financial statement carrying amount (book value) of an asset or liability and its tax basis. Explain this tax effect of the temporary difference. How might it produce a deferred tax liability? A deferred tax asset?
A deferred tax liability or asset that is related to an asset or liability shall be classified in the statement of financial position based on the expected reversal date of the temporary difference
What is the difference between recognition and realization of a deferred tax asset?
A deferred tax liability or asset that is related to an asset or liability shall be classified in the statement of financial position based on the expected reversal date of the temporary difference. a. TRUE b. FALSE