Which of the following is false? (a) Under GAAP, deferred taxes are reported based on the classification of the asset or liability to which it relates. (b) Under IFRS, some potential liabilities are not recognized. (c) Under GAAP, the enacted tax rate is used to measure deferred tax assets and liabilities. (d) Under IFRS, all deferred tax assets and liabilities are classified as non-current.

Q: tax allocation

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A: Solution: following cases would result in a Deferred Tax Liability as they will create future…

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Q: Which of the following cases would result to a Deferred Tax Asset? I – Tax Revenues Accounting…

A: Solution: Following cases would result in deferred tax asset as it will create future deductible…

Q: All of the following must be disclosed separately, except A. The aggregate amount of current and…

A: The effect on tax due to any differences in timing can be termed as deferred tax, which also means…

Q: List examples of temporary differences that create: deferred tax assets. Deferred tax liability.

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Q: Which of the following is an example of a temporary difference which would result in a deferred tax…

A: Solution: Rent revenue collected in advance included in taxable income before it is included in…

Q: It means income (in the broad sense) excluding income which is by statutory provisions or otherwise…

A: Exempted Income: When it comes to taxation, exempt incomes are incomes that are not taxable under…

Q: Analysts should treat deferred tax liabilities that are expected to reverse as:A . equity.B .…

A: Option (B)is correct.

Q: Where the carrying amount of an asset or liability is different from the tax base a ‘temporary…

A: Temporary difference is occurre in one period and shall be reverse in subsequent period for tax…

Q: Under what condition deferred tax assets can be offset against deferred tax liabilities?

A: DTA stands for Deferred tax asset and DTL stands for Deferred tax liability which is integral part…

Q: or accounting and tax purposes. B. Intraperiod tax allocation is required for the effect of…

A: Option A is incorrect because Intraperiod tax allocation arises because certain temporary difference…

Q: added to the financial income in computing for the taxable income?

A: First option is wrong because the unrealizable gains from trading securities is to be deducted from…

Q: TRUE OR FALSE? Under IFRS, deferred tax liability and deferred tax asset should be reported as…

A: The given statement is True... Under IFRS, deferred tax liability and deferred tax asset should be…

Q: he deferred income tax liability: Top of Form Multiple Choice Is recorded whether or not the…

A: Deferred tax asset/liability results from temporary difference between the income tax recorded and…

Q: Which of the following is not a disclosure required by PAS 12 Income Taxes? Group of answer choices…

A: PAS 12 Income taxes is an accounting standard which is meant and used for guidelines and policies…

Q: A deductible temporary difference leads to the payment of:   Select one: A. less tax in the…

A: The question is related to Taxes on Income.There are two types of deferred tax- (i) Deferred tax…

Q: What type of event would create a deferred tax asset and deferred tax liability?

A: Given: The difference in income tax from the currently payable tax.

Q: Intra-period tax allocation is the allocation of the total income tax expense to the various…

A: Intra-period tax allocation means the allocation of income tax expense. Income tax expense is the…

Q: The justification for the method of determining periodic deferred tax expense is based on the…

A: Deferred tax refers to the difference between the tax stated in the income statement and the tax…

Q: It is the place where an authority has the right to impose and collect taxes. *         a. Source…

A: Tax: It refers to a mandatory financial levy imposed by the government on the taxpayer including…

Q: Which of the following methods is not allowed for tax purposes if FIFO (first in first out) is used…

A: Under FIFO(First in, First Out) method, inventories purchased first are assumed to be sold first.…

Q: What are the possible treatments for tax purposes of anet operating loss? What are the circumstances…

A: Net operating loss: When the level of income is less than the expenses for a given or a considered…

Q: If during the current year, taxable profit is greater than accounting profit and the difference is a…

A: Temporary differences refer to the differences between taxable and pre-tax book income the effect of…

Q: A deferred tax account is classified on the balance sheet as: A net noncurrent amount A net current…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: If the carrying amount of an asset is higher than the tax base, the difference will result in…

A:

Q: Which of the following is deducted from the financial income in computing for the taxable income?…

A: Donations received during the year is deducted from the financial income in computing for the…

Q: Some accountants believe that deferred taxes should not be recognized for certain temporary…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Listed below are items that are treated differently for accounting purposes than they are for tax…

A: The question is based on the concept of Accounting Standards.

Q: A temporary difference that would not result in a deferred tax asset but not a permanent difference?…

A: Solution: A temporary difference that would not result in a deferred tax asset but not a permanent…

Q: Which cost flow assumption must be used for financial reporting if it is also used for tax…

A: Financial reporting: Financial reporting is a typical accounting procedure in which financial…

Q: Temporary differences result in future taxable or deductible amounts when the related asset or…

A: Permanent difference refers to those differences that are caused by transactions and events that…

Q: A deferred tax liability or asset that is related to an asset or liability shall be classified in…

A: The answer for the question on deferred tax liability or asset is discussed hereunder : What is…

Q: This is not a requisite for business expense to be deductible. Group of answer choices It must be…

A: Business expenses are those expenses incurred in a business organization by carrying on the normal…

Q: List examples of temporary differences that create: deferred tax assets deferred tax liabilities.

A: Temporary difference between the tax base and carrying amount arise on account of difference in the…

Q: Which of the following is not a disclosure related to income taxes based on IAS 12? * O The amount…

A: Answer: IAS 12- Income taxes. The disclosure related to income taxes is mentioned as : taxes…

Q: A temporary difference that would not result in a deferred tax asset but not a permanent difference?…

A: Solution: A temporary difference that would not result in a deferred tax asset but not a permanent…

Q: When accounting standards require recognition of an expense that is not permitted undertax laws, the…

A: Temporary differences incur when there is a difference between the tax base and the carrying amount…

Q: When certain expenditures result in tax credits that directly reduce taxes, the companywill most…

A: Tax credits directly reduces taxes and these are permanent in nature. Hence, there is no deferred…

Q: nonmonetary?

A: Nonmonetary items are the items that are subject to change in value over a period of time. These…

Q: Describe the procedure(s) involved in classifying deferred tax amounts on the statement of financial…

A: Deferred tax accounts nature must be analyzed and classified either as net current amount or as net…

Q: Will the existence of unused tax losses always lead to the recognition of a deferred tax assets?…

A: SOLUTION- DEFERRED TAX = IT REFERS TO EITHER A POSITIVE (ASSETS) OR NEGATIVE (LIABILITY) ENTRY ON…

Q: Question 1: Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with a…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: The FASB has defined several terms in regard to accounting for income taxes. Below are various code…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Which of the following is a temporary difference that normally is recognized for accounting purposes…

A: Temporary difference is the difference between when the revenue and expenses are  reported for…