deferred tax

Question 1

base principle of a deferred tax asset

Answer 1

an asset that reflects the inflow of economic benefits in the future
income tax savings in the future

Question 2

categories of deferred tax assets

Answer 2

-deductible temporary difference
-unused tax credits
-unused tax losses (assessed loss)

Question 3

deferred tax liability more than deferred tax asset

Answer 3

recognize deferred tax asset in full because net effect results in DTL

Question 4

deferred tax liability less than deferred tax asset

Answer 4

net DTA
only recognised if it is probable that enough future taxable profits which DTA can be set off against

Question 5

tax base of an asset

Answer 5

future tax deductions

Question 6

scope of management intention

Answer 6

revaluation model

fair value model

Question 7

management intention is considered when an asset is measured using cost model. true or false ?

Answer 7

false

Question 8

tax base of a non-deductible , non current asset

Answer 8

TB =0
it will remain zero , taxable difference will arise at initial recognition
therefore exempt from tax

Question 8

why is there no rate reconciliation for non deductible, non-depreciable

Answer 8

because there is no movement in temporary difference ,therefore no effect on profit (0 depreciation), or taxable profit ( no deduction)