- CFA Exams
- CFA Exam: Level I 2021
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 27. Income Taxes
- Subject 7. Comparison of IFRS and U.S. GAAP
CFA Practice Question
______ the creation of a deferred tax asset arising from negative goodwill.
B. Both IFRS and GAAP allow
C. GAAP allows but IFRS does not allow
A. IFRS allows but GAAP does not allow
B. Both IFRS and GAAP allow
C. GAAP allows but IFRS does not allow
Correct Answer: C
User Contributed Comments 3
| User | Comment |
|---|---|
| zriddle | IFRS = Deferred tax asset from negative goodwill. GAAP = not allowed |
| X212250 | No^ |
| Freddie33 | Lol either you or the answer is wrong @zriddle |