A Deductible Temporary Difference Is One That Will Result In

question 54

Multiple Choice

A deductible temporary difference is one that will result in:

• A) A decrease in income tax recoverable in future reporting periods when the carrying amount of the asset or liability is recovered or settled.
• B) An increase in income tax payable in future reporting periods when the carrying amount of the asset or liability is recovered or settled.
• C) A decrease in income tax recoverable in future reporting periods when the carrying amount of the asset or liability is recovered or settled and an increase in income tax payable in future reporting periods when the carrying amount of the asset or liability is recovered or settled.
• D) A decrease in income tax payable in future reporting periods when the carrying amount of the asset or liability is recovered or settled.
• E) None of the given answers.

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Definitions:

IASB

The International Accounting Standards Board, responsible for developing and publishing the International Financial Reporting Standards (IFRS).

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting.

Standard-Setting

The process of establishing norms or regulations that dictate the quality and safety of products, services, or systems within an industry.

Political Considerations

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