Under IFRS when a change in the tax rates is enacted I. Companies should record its effect on existing deferred tax accounts immediately. II. Companies report the effect of changes in tax rates on deferred tax accounts in the period the new rate becomes effective. III. Companies report the effect of changes in tax rates on deferred tax accounts that arise in future periods when the new tax rates are in effect. Select one: a. Either I, II, or III, depending on how frequently tax rates change in the company’s tax jurisdiction b. II Only c. I Only d. III Only
Under IFRS when a change in the tax rates is enacted I. Companies should record its effect on existing deferred tax accounts immediately. II. Companies report the effect of changes in tax rates on deferred tax accounts in the period the new rate becomes effective. III. Companies report the effect of changes in tax rates on deferred tax accounts that arise in future periods when the new tax rates are in effect. Select one: a. Either I, II, or III, depending on how frequently tax rates change in the company’s tax jurisdiction b. II Only c. I Only d. III Only
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 2P: Temporary and Permanent Differences In the current year, you are calculating a diversified companys...
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Under IFRS when a change in the tax rates is enacted
I. Companies should record its effect on existing
II. Companies report the effect of changes in tax rates on deferred tax accounts in the period the new rate becomes effective.
III. Companies report the effect of changes in tax rates on deferred tax accounts that arise in future periods when the new tax rates are in effect.
Select one:
a.
Either I, II, or III, depending on how frequently tax rates change in the company’s tax jurisdiction
b.
II Only
c.
I Only
d.
III Only
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