Deferred tax–you either know it or you don't. Test yourself against one of our specialists, Cynthia Leung. You can find guidance to help you with the answers in our topic summary on taxation on pwcinform.com.
Q1: Deferred tax assets or liabilities that will be recovered within 12 months are presented as current assets or current liabilities in the balance sheet. True or false?
True False Q2: When the carrying amount of an asset is more than its tax base, is there a:
C100 C nil Q4: Which of the following disclosures are required by IAS 12?
The amount of each type of deferred tax asset and liability (for example, tax losses or accelerated tax depreciation) The amount of unused tax losses for which no deferred tax asset is recognized The amount of undistributed profits of subsidiaries, associates or joint ventures for which no deferred tax liability is recognized (i) and (ii) (i) and (iii) All of the above Q4: Where can interest paid be classified?
financing activities; operating activities; operating or financing activities; or operating, investing or financing activities. Q5: When is a deferred tax liability recognized in a business combination?
When there is a temporary difference on goodwill that is not tax deductible When there is temporary difference on acquisition accounting adjustments to the carrying amount of identifiable assets and liabilities When there are temporary differences both on goodwill that is not tax deductible and on acquisition accounting adjustments to the carrying amount identifiable assets and liabilities Q6: When is a deferred tax liability recognized in consolidated financial statements for the temporary differences associated with investments in subsidiaries and associates?
When the parent is able to control the dividend policy of the subsidiary, and the temporary difference will not reverse in the foreseeable future When management of an associate states it does not intend to distribute any dividend in the current year When the parent's management has announced a plan to sell the subsidiary within two years (i) and (ii) (ii) and (iii) (i) and (iii) All of the above Q7: A change in tax rate from 30% to 20% is enacted on December 31, 20XX. The new tax rate takes effect on April 1, 20XX. An entity has an accounting year-end on December 31, 20XX. How should the deferred tax be measured on temporary differences that are expected to reverse after April 20XX?
At 20% At 30% At an average tax rate based on 20% and 30%...