CAF-6 · Chapter 7 · Question 9 of 15
How should deferred tax assets and liabilities be classified in the Statement of Financial Position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Always as Non-Current.
Explanation
According to IAS 1 (and IAS 12), deferred tax assets and liabilities must always be classified as non-current.
More IAS 12 Income Taxes MCQs
- Q11Wait Ltd recognizes a provision for product warranty of Rs. 50,000. The cost is only deductible for tax purposes when the warranty claims…
- Q12Under IAS 12, 'Current Tax' is:
- Q13The 'Initial Recognition Exemption' applies when an asset is acquired in a transaction that:
- Q14Which of the following would be considered a 'Permanent Difference' (though IAS 12 focuses on temporary ones)?
- Q15The measurement of deferred tax liabilities and assets should reflect the tax consequences that would follow from the manner in which the…