Which Statement Is True

question 27

Multiple Choice

Which statement is true?

• A)IAS 12 states the following: Deferred tax assets and liabilities shall be discounted.
• B)Enterprises are expected to keep very detailed scheduling of the timing of the reversal of each temporary difference.
• C)To permit, but not require discounting would result in deferred tax assets and liabilities which would be comparable between entities.
• D)The rationale for not discounting is based on considerations of costs and benefits as well as comparability among enterprises.

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Definitions:

Simulation Heuristic

A cognitive process where individuals predict the frequency of an event based on how easily they can imagine it happening.

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Mid-Winter Getaway

A vacation or short break taken during the winter months, often to a warmer location to escape the colder weather.