The IASB Believes That the Asset-Liability Method Is the Most

question 43

Multiple Choice

The IASB believes that the asset-liability method is the most consistent method for accounting for income taxes.Basic principles of this method include
I.A current tax liability or asset is recognized for the estimated taxes payable or refundable on the tax return for the current year.
II.A deferred tax liability or asset is recognized for the estimated future tax effects attributable to temporary differences and carryforwards.
III.The measurement of current and deferred tax liabilities and assets, is based on provisions of the enacted tax law.
IV.The measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized.

• A)I, II and only.
• B)II and III only.
• C)I, II, and IV only.
• D)I, II, III and IV.

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Definitions:

Withdrawal Stage

A phase in relationship or process termination where parties disengage and reduce their dependency or involvement with each other.

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A phase in the process of change where the new behavior is consolidated and maintained over time.

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A conceptual framework describing the sequence of stages individuals typically go through in their career, from initial entry to eventual retirement, each with distinct challenges and growth opportunities.

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