Which of the following statements is correct with regard to IFRS and GAAP? a.    Under GAAP, all potential liabilities related to uncertain tax positions must be recognized. b.    The tax effects related to certain items are reported in equity under GAAP; under IFRS, the tax effects are charged or credited to income. c.    IFRS uses an affirmative judgment approach for deferred tax assets, whereas GAAP uses an impairment approach for deferred tax assets. d.    IFRS classifies deferred taxes based on the classification of the asset or liability to which it relates.

Q: Which one of the following is correct as per section 4-10 of ITAA97 tax offsets? Select one:o are…

A: The taxable income for a company is calculated by adding all the taxable revenues, and deducting the…

Q: Which of the following statements is NOT correct? O A. Taxable income and accounting profit may…

A: Option d is correct .

Q: Which of the following cases would result to a Deferred Tax Asset? I – Tax Revenues Accounting…

A: Solution: Following cases would result in deferred tax asset as it will create future deductible…

Q: All of the following must be disclosed separately, except A. The aggregate amount of current and…

A: The effect on tax due to any differences in timing can be termed as deferred tax, which also means…

Q: List examples of temporary differences that create: deferred tax assets. Deferred tax liability.

A: A deferred tax asset is a balance sheet item that results from an excess or early tax payment. A…

Q: Under which of the two accounting methods can you have instances of Deferred Tax Assets like Net…

A: The accounting method changes the rules and principles for recording the financial transaction.

Q: Which of the following is false? a.    Under GAAP, deferred taxes are reported based on the…

A:

Q: Which of the following is a correct formula to compute for total income tax expense?      a. Current…

A: >There are various timing differences between pretax income and taxable income. >These timing…

Q: Which of the following tax accounting methods least likely defers payment of taxes?     Spread Out…

A: Spready Out method: Under this method revenue is recognised over a period of time. Lets make an…

Q: The purpose of an inter-period income tax allocation is to    a. Allow reporting entities to fully…

A: Tax is the amount which an individual or business is liable to pay the government for business…

Q: Analysts should treat deferred tax liabilities that are expected to reverse as:A . equity.B .…

A: Option (B)is correct.

Q: A deferred tax liability/asset is computed using the? either current or expected tax laws,…

A: A deferred tax liability/asset is computed using the:: either current or expected tax laws,…

Q: Under what condition deferred tax assets can be offset against deferred tax liabilities?

A: DTA stands for Deferred tax asset and DTL stands for Deferred tax liability which is integral part…

Q: or accounting and tax purposes. B. Intraperiod tax allocation is required for the effect of…

A: Option A is incorrect because Intraperiod tax allocation arises because certain temporary difference…

Q: added to the financial income in computing for the taxable income?

A: First option is wrong because the unrealizable gains from trading securities is to be deducted from…

Q: Which of the following cases would affect the noncurrent liabilities portion of the balance sheet?…

A: When Taxable income is greater than the accounting income then deferred tax liability should be…

Q: Explain the Revenue Related to Deferred Tax Liabilities.

A: Deferred tax liability is explicitly made when an expense commitment gathered in one budgetary year…

Q: Do the liabilities and assets that are generated by using the 'balance sheet method' of accounting…

A: The implication of the rules of conceptual frame work will helpful to create best standard in the…

Q: Intra-period tax allocation is the allocation of the total income tax expense to the various…

A: Intra-period tax allocation means the allocation of income tax expense. Income tax expense is the…

Q: he deferred tax consequence attributable to a deductible temporary difference and operating loss…

A: Solution: Deferred tax assets are created from those temporary differences which are future…

Q: Which of the following is true in respect of deferred tax liabilities? None of the listed choices…

A: Deferred tax liability is a liability that is created due to a difference is due and payment cycle…

Q: Which of the following methods is not allowed for tax purposes if FIFO (first in first out) is used…

A: Under FIFO(First in, First Out) method, inventories purchased first are assumed to be sold first.…

Q: Listed below are items that are commonly accounted for differently for financial reporting purposes…

A: (a) The MACRS depreciation system is used for tax purposes, and the straight-line depreciation…

Q: Briefly explain the recognition criteria of deferred tax assets and deferred tax liability and the…

A: Both deferred tax liabilities and assets should be recognized gross in the balance sheet unless the…

Q: A temporary difference which would result in a deferred tax liability is O excess of tax…

A: Introduction:- A deferred tax liability represents an obligation to pay taxes in the future.…

Q: (Identify Temporary or Permanent Differences) Listed below are items that are commonly accounted for…

A: Given information is: We have to identify for the given cases that in which option they pertains to:…

Q: What are the possible treatments for tax purposes of anet operating loss? What are the circumstances…

A: Net operating loss: When the level of income is less than the expenses for a given or a considered…

Q: Deferred tax liabilities should be treated as equity when:A . they are not expected to reverse.B .…

A: Deferred tax liability: Deferred tax liability is a tax that is measured or is outstanding for the…

Q: Which of the following is an example of a temporary difference which would result in a deferred tax…

A: Solution: Rent revenue collected in advance included in taxable income before it is included in…

Q: A deferred tax liability (or asset) is described as the tax effect of the temporary difference…

A: A deferred tax adjustment is prevalent where there is a temporary difference in the book value and…

Q: his is an item in the balance sheet relating to the unpaid portion of an income already taxed.…

A: Answer: Balance sheet consists of assets and liabilities as part of financials.

Q: Listed below are items that are commonly accounted for differently for financial reporting purposes…

A: Permanent difference refers to those differences that ae caused by transactions and events, that…

Q: If the carrying amount of an asset is higher than the tax base, the difference will result in…

A:

Q: Under what condition deferred tax assets can be offset against deferred tax liabilities

A: SOLUTION- DEFERRED TAX ASSETS- IT IS AN ITEM ON THE BALANCE SHEET THAT RESULT FROM OVER PAYMENT OR…

Q: What is a permanent difference? Give an example What is a temporary difference? Give an example. How…

A: 1) Difference between the tax expense and tax payable which is caused by an item which does not…

Q: A deferred tax liability or asset that is related to an asset or liability shall be classified in…

A: The answer for the question on deferred tax liability or asset is discussed hereunder : What is…

Q: explain the recognition criteria of deferred tax assets and deferred tax liability.

A: Deferred tax asset are the assets recorded when the income calculated according to statutory tax…

Q: List examples of temporary differences that create: deferred tax assets deferred tax liabilities.

A: Temporary difference between the tax base and carrying amount arise on account of difference in the…

Q: Which of the following is not a disclosure related to income taxes based on IAS 12? * O The amount…

A: Answer: IAS 12- Income taxes. The disclosure related to income taxes is mentioned as : taxes…

Q: Briefly explain the concepts of accounting profit, taxable profit, temporary difference, taxable…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Describe the procedure(s) involved in classifying deferred tax amounts on the statement of financial…

A: Deferred tax accounts nature must be analyzed and classified either as net current amount or as net…

Q: What is the difference between tax rates and tax rate structures? How does this notion of…

A: Income tax payable is an obligation for the tax payers to the government on the taxable income.…

Q: Question 1: Why do deferred tax assets or deferred tax liabilities arise? Explain your answer with a…

A: Income tax actual paid and income tax expenses some time differ because of deferred income tax.…

Q: Which one of the following is correct as per section 4-10 of ITAA97 tax offsets? Select one: are…

A: The two main income tax assessment acts are ITAA 1936 (original) and ITAA 1997 (active on 1 July…

Q: A deferred tax liability or asset that is related to an asset or liability shall be classified in…

A: Solution: True. This is because deferred tax liability or asset are classified in the statement of…

Q: Deferred tax asset and deferred tax liability are based on future tax rates while current tax asset…

A: The concept of Deferred Tax arises due to the timing difference between income as per the accounting…