CAF-6 · Chapter 7 · Question 1 of 15
What is the 'Tax Base' of an asset?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The amount that will be deductible for tax purposes against any taxable economic benefits that will flow to the entity when it recovers the carrying amount of the asset.
Explanation
IAS 12 defines the tax base of an asset as the amount that will be deductible for tax purposes against taxable economic benefits that will flow to an entity when it recovers the carrying amount of the asset.
More IAS 12 Income Taxes MCQs
- Q3Which of the following results in a 'Deferred Tax Liability'?
- Q4A deferred tax asset should be recognized for unused tax losses and unused tax credits to the extent that:
- Q5Deferred tax assets and liabilities should be measured using:
- Q6Which of the following is an example of an 'Exempt' temporary difference where no deferred tax is recognized at initial recognition?
- Q7An entity revalues its building upwards by Rs. 1 million. The tax laws do not allow this revaluation for tax purposes. Where should the…