Deferred Taxes

Question 1

Info

Answer 1

Started on 22 September 2014 @5.00 PM
Total questions 48
To do at a time 48
Practice session 100 or so

Question 2

Temporary differences arise when expenses are deductible for tax purposes

Answer 2

Before and after they are recognized in financial income.

Question 3

justification for the method of determining periodic tax expense is based on the concept of

Answer 3

Recognition of assets and liabilities.

Question 4

The insurance premium and the municipal income both are temp or permanent difference.

Answer 4

Both are permanent differences.

Question 5

Tax benefit

Answer 5

the tax benefit of an operating loss carry forward or carry back shall be reported in the same manner as the source of income (loss) in the current year. The problem states that the tax benefit of the loss reduced taxes on continuing operations. Thus, in year 3, the tax benefit shall be reported under income from continuing operations.

Question 6

The types and amounts of existing temporary and permanent differences.

Answer 6

Should be disclosed.

Question 7

The nature and amount of each type of operating loss and tax credit carry forward.

Answer 7

Should not be disclosed.

Question 8

In IFRS how deferred tax assets and liabilities are classified?

Answer 8

May be classified as non current.

Question 9

Two things about IFRS

Answer 9

IFRS permits netting of deferred taxes that relate to the same taxing authority.
IFRS permits deferred taxes to be classified as noncurrent.