CAF-6 · Chapter 7 · Question 6 of 15
Which of the following is an example of an 'Exempt' temporary difference where no deferred tax is recognized at initial recognition?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The initial recognition of goodwill.
Explanation
IAS 12 prohibits the recognition of a deferred tax liability arising from the initial recognition of goodwill.
More IAS 12 Income Taxes MCQs
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