CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

The valuation allowance approach is used by ______.

A. U.S. GAAP
B. IFRS
C. both U.S. GAAP and IFRS
Correct Answer: A

Under IFRS, a deferred tax asset is recognized if it is probable (more likely than not) that sufficient taxable profit will be available against which the temporary difference can be utilized. No valuation allowance is used.

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