Unless a company has a legal right of set-off, IAS 12 Income Taxes, requires disclosure of all of the following information for deferred tax in the statement of financial position: I  The amount of deferred tax assets recognised II The amount of the deferred tax liabilities recognised III The net amount of the deferred tax assets and liabilities recognised IV The amount of the deferred tax asset relating to tax losses a. I, II and III only b. III and IV only c. I, II and IV

Q: When a company records a deferred tax asset, it may need to also report a valuation allowance if it…

A: 1.FASB ASC 740-10-30-17 citation named as “Income Taxes–Overall–Initial Measurement Establishment of…

Q: e journal entry required to record the tax effect of the revaluation. a. None of answers given b.…

A: Revaluation has been the process of adjusting a fixed asset class book value to its own current…

Q: A company has only one deductible temporary difference due to the use of the current expected credit…

A: Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of…

Q: In relation to 'retained earnings', AASB 101 mandates the following disclosures: The beginning…

A: Retained earnings is the part of owner's equity. It is the amount of profit retained in the business…

Q: Which one of the following is correct as per section 4-10 of ITAA97 tax offsets? Select one:o are…

A: The taxable income for a company is calculated by adding all the taxable revenues, and deducting the…

Q: tax allocation

A: Correct Answer 1 :- D The purpose is to relate the income tax expense to the items which affect the…

Q: When is a company allowed to initially recognize the financial statement effects of a tax position?

A: An entity shall initially recognize the financial statement effects of a tax position when it is…

Q: Under IFRS when a change in the tax rates is enacted I.    Companies should record its effect on…

A: Under IFRS, companies report the effect of changes in tax rates on deferred tax accounts in the…

Q: A corporation will report a temporary, favorable book-tax difference in the year it deducts a net…

A: A net operating loss carryforward means your current year's net operating loss applies to future…

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: current and deferred tax expense

A: Option A is correct because deferred tax expense is recognized if there is a change in the deferred…

Q: Consult the relevant proclamations and regulations to discuss elaborately how the following types of…

A: Schedule D tax rates is a residuary in which income taxable under them Income Tax Proclamation but…

Q: Schedule M-1 of Form 1120 is used to reconcile financial net income with taxable income. reported on…

A: M-1 of Form 1120 is used to reconcile financial net income with taxable income reported on the…

Q: Deferred income taxes result from: a. The fact that bond interest is deductible in the computa-tion…

A: Option C is correct.

Q: The entry to recognize that a portion of a deferred tax asset would more likely than not be not…

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

Q: How does a company determine the amount of income tax expense to report in an interim period?

A: Income tax: Income tax refers to the direct tax levied on individual person or business and…

Q: What is the main principle of tax-effect accounting as outlined in AASB 112/IAS 12?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: All of the following statements are correct concerning PAS 12 Income Taxes. Which is the exception?…

A: Following statements are correct concerning PAS 12 Income Taxes:1. Tax assets and liabilities…

Q: d. either current or expected future tax laws

A: Taxes are the amount of dues or liabilities that need to be paid by the individual to the…

Q: All of the following statements are correct concerning PAS 12 Income Taxes. Which is the exception?…

A: Solution:  Following statements are correct concerning PAS 12 Income Taxes: Tax assets and…

Q: Which statement is false? a) Deferred taxes are the product of temporary difference in the…

A: Taxes refers to the amount that is charged by the government to individuals and organizations on the…

Q: analyze disclosures relating to deferred tax items and the eff ective tax rate reconciliation,and…

A: Disclosures relating to deferred tax items can provide valuable information to the analysts. But the…

Q: Which of the following is true

A: The correct answer is 2. Investments in stocks of other companies accounted for using the equity…

Q: As an auditor, you are tasked to audit the income tax liability of Taxpayer Corp. which of the…

A: Permanent differences is difference between the tax expenses and tax payable due to an item that…

Q: What are the two objectives of accounting for income taxes O Deferred Tax Assets Deferred Tax…

A: The answer is as fallows

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: Financial Assets representing a contractual right to receive cash in the future. Financial Liability…

A: Financial asset, is an asset that gives contractual right to an entity, to receive cash or another…

Q: For reporting purposes, current deferred tax assets and current deferred tax liabilities for the…

A: Deferred Tax Liability (DTL) or Deferred Tax Asset (DTA) forms an important part of Financial…

Q: Accounting for uncertainty in tax positions is prescribed by GAAP in FASB ASC 740–10: Income Taxes–…

A: GAAP:GAAP stands for “Generally Accepted Accounting Principles”. It provides the accounting rules…

Q: Intraperiod tax allocation relates income tax expense to the items that affect the amount of tax. O…

A: Income tax is calculated on income of each year in total. Intraperiod means within one period.

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: Instructions: Using the FASB Codification, provide information from the ASC that answers the…

A: A tax position is a person's or an organization's opinion or interpretation of the tax ramifications…

Q: Which of the following is false? (a) Under GAAP, deferred taxes are reported based on the…

A: Liabilities that may occur in the future depending on the outcome of the future event are termed as…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.