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:

IFRS

The International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB), aimed at making global financial reporting more transparent and comparable.

OCI

Other Comprehensive Income, which includes revenues, expenses, gains, and losses that are not included in net income and directly affect shareholders' equity.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale during the period.

Cost of Goods Sold

Cost of Goods Sold (COGS) is the direct cost attributable to the production of the goods sold by a company, including materials and labor costs.