F6

Question 1

Which of the following should be disclosed in a company’s financial statements related to deferred taxes?
I.
The types and amounts of existing temporary differences.
II.
The types and amounts of existing permanent differences.
III.
The nature and amount of each type of operating loss and tax credit carryforward.

Answer 1

Only I and III

• Disclose everything = general rule
• BUT there are no deferred taxes in permanent differences
• Disclose type and amount of operating loss and carry forwards as well as types and amounts of existing temporary differences