Deferred Taxes

Question 1

Deferred Taxes

Define Deferred Tax Assets

Answer 1

Deferred tax assets are measured by the total temporary differences multiplied by the tax rates in effect when the tax differences unwind.

Question 2

Deferred Taxes

True or False

Deferred tax liabilities are measured by the total temporary differences multiplied by the tax rates in effect when the tax differences unwind.

Answer 2

True

Deferred tax liabilities are measured by the total temporary differences multiplied by the tax rates in effect when the tax differences unwind.

Question 3

Deferred Taxes

True or False

Deferred tax assets and liabilities are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting

Answer 3

True

Deferred tax assets and liabilities are classified as CURRENTor NONCURRENT based on the classification of the related asset or liability for financial reporting

Question 4

Deferred Taxes

True or False

IFRS provides that the netting of deferred tax assets and liabilities may only occur if the accounts relate to the same taxing authority and the entity has a legal right to offset the taxes.

Answer 4

True

IFRS provides that the netting of deferred tax assets and liabilities may only occur if the accounts relate to the same taxing authority and the entity has a legal right to offset the taxes.

Question 5

Deferred Taxes

True or False

Under IFRS, deferred tax assets and liabilities may be classified as current or noncurrent.

Answer 5

False

Under IFRS, deferred tax assets and liabilities may only be classified as NONCURRENT.

Question 6

Deferred Taxes

True or False

For tax purposes, gains and losses on securities are not recognized until the securities are sold.

Answer 6

Deferred Taxes

True

For tax purposes, gains and losses on securities are not recognized until the securities are sold.

Question 7

Deferred Taxes

True or False

Valuation allowances for deferred taxes are used for IFRS purposes.

Answer 7

False

Valuation allowances for deferred taxes are NOT used for IFRS purposes.