Which of the following statements about measuring deferred tax under IAS 12 is correct?

Test yourself: pick an answer

• A)Deferred tax is measured at the current year's tax rate and discounted to present value
• B)Deferred tax is measured at the tax rates expected to apply when the difference reverses, based on rates enacted or substantively enacted by the reporting date, and it is not discounted
• C)Deferred tax is measured at the rate expected to apply in the future, even if that rate has not yet been enacted
• D)Deferred tax liabilities are discounted, but deferred tax assets are not