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

question 18

Essay

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) it does not use a valuation account.
d) it permits the use of a deferred tax asset account to the extent that it is probable that it will be realized.

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Definitions:

Annuity Due

A type of annuity payment where payments are made at the beginning of each period, instead of at the end, which is common in standard annuities.

Ordinary Annuity

A series of equal payments made at equal intervals over a period of time, with the first payment occurring at the end of the period.

Present Value

The existing value of a future sum or cash flow sequence, assessed with a certain rate of return.

Compounded Annually

An interest calculation method where interest is added to the principal sum at the end of each year, affecting future interest calculations.