Using IFRS, IAS 12 Guidelines Allow for All of the Following

question 40

Multiple Choice

Using IFRS, IAS 12 guidelines allow for all of the following except

• A)the choice of using either the taxes payable method or the future income taxes method.
• B)the use of the temporary difference approach.
• C)does not use a valuation account.
• D)permits the use of a deferred tax asset account to the extent that it is probable.

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Definitions:

Finance Leases

A type of lease where the lessee has use of the asset for most of its useful life and the lease payments are designed to cover the full cost of the asset, along with interest.

Truth In Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Sales Contract

A legal agreement between a buyer and seller detailing the terms and conditions of a sale of goods or services.

Intent Of The Parties

The actual and mutual intention of all parties involved in a contract or legal agreement, often used to interpret or enforce the agreement.