CAF-6 · Chapter 7 · Question 2 of 15
A 'Taxable Temporary Difference' arises when:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Carrying Amount > Tax Base (for an asset)
Explanation
For an asset, if the carrying amount is greater than the tax base, it will lead to taxable amounts in the future, resulting in a taxable temporary difference and a deferred tax liability.
More IAS 12 Income Taxes MCQs
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- Q8Which of the following is true regarding the discounting of deferred tax assets and liabilities?