F6 - Accounting for Income Taxes

Question 1

Information disclosed in the financial statements related to deferred taxes?

Answer 1

1) The types and amounts of existing temporary differences
2) The nature and amount of each type of operating loss and tax credit carryforward

Not Permanent differences, since there is no deferred taxes for permanent differences*

Question 2

Temporary difference that decreases future taxable income is a deferred ____

Answer 2

Tax ASSET.

Question 3

Deferred Tax Assets and Deferred Tax Liability are reported under IFRS as:

Answer 3

Noncurrent in the balance sheet

Question 4

Temporary Depreciation difference

Answer 4

(Noncurrent) Deferred Tax Liability (Use future tax rates to calculate)

Question 5

Long-term loss accrual in excess of deductible amount

Answer 5

Deferred Tax Liability

Question 6

Deferred tax expense

Answer 6

Increase in deferred tax liability - Increase in deferred tax asset