- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 9. Analysis of Income Taxes
- Subject 1. Differences between Accounting Profit and Taxable Income
CFA Practice Question
Which statement(s) is (are) true regarding deferred taxes?
II. Deferred taxes should be measured at the tax rate that is expected to apply when the asset is realized or the liability settled.
III. Deferred taxes should be recognized using the present value of amounts that are expected to be recovered or settled in the future.
I. Deferred taxes should be based on applicable tax rates on the balance sheet date.
II. Deferred taxes should be measured at the tax rate that is expected to apply when the asset is realized or the liability settled.
III. Deferred taxes should be recognized using the present value of amounts that are expected to be recovered or settled in the future.
Correct Answer: II only
III. The face value should be used.
User Contributed Comments 1
| User | Comment |
|---|---|
| khalifa92 | I. assessed but not based on. |