CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Which of the following procedures is not applied when measuring the amount of a deferred tax asset or liability?
A. The liability method must be used in measuring the deferred tax asset or deferred tax liability.
B. The tax consequences of temporary differences must be measured by using enacted future tax rates, and the tax consequences of permanent differences are not recognized.
C. The deferred tax asset or liability must be measured at its present value.
Explanation: Present value is not used in determining tax consequences.

User Contributed Comments 3

User Comment
danlan The others are applied.
danlan The deferred tax asset or liability will be measured with future tax rate.
jpducros The answer is right...but in some countries you can actualize deffered tax assets (Argentina for example)...
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