- CFA Exams
- 2021 CFA Level I Exam
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 27. Income Taxes
- Subject 5. Recognition and Measurement of Current and Deferred Tax
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. |