Which of the Following Statements Is Correct with Respect to AASB

question 32

Multiple Choice

Which of the following statements is correct with respect to AASB 112 "Income Taxes" when the government increase tax rates?

• A) The entity applies a prospective application to deferred tax assets and deferred tax liabilities initially recognized subsequent to the announcement of the tax change.
• B) Expense is recognised if the entity has deferred tax liabilities only.
• C) Income is recognised if the entity has deferred tax liabilities only.
• D) Expense is recognised if the entity has deferred tax assets only.
• E) None of the given answers

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Definitions:

Collective Actors

Groups or entities that act together with a shared purpose or intention in social or political arenas.

Reality Proposition

A statement or assertion that can be tested and verified to determine its truth in relation to reality or empirical facts.

Aggression-Approval

Describes a situational response wherein acts of aggression are met with approval or consent, often studied in social psychology.

Stimulus

Any object or event that elicits a sensory or behavioral response in an organism.