Which of the Following Statements Is Correct with Respect to IAS

question 46

Multiple Choice

Which of the following statements is correct with respect to IAS 12 Income Taxes when the government increase tax rates?

• A)The entity applies a prospective application to deferred tax assets and deferred tax liabilities initially recognised subsequent to the announcement of the tax change.
• B)Expense is recognised if the entity has deferred tax liabilities only.
• C)Income is recognised if the entity has deferred tax liabilities only.
• D)Expense is recognised if the entity has deferred tax assets only.

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Definitions:

Standard Deviation

An index that gauges the degree of fluctuation or deviation within a group of data entries.

Null Hypothesis

A default hypothesis that there is no effect or no difference, and it is the assumption to be tested in statistical hypothesis testing.

Parameter of Interest

A specific characteristic or measure in a population that a study aims to estimate or test.

Power Consumption

The amount of energy consumed by electronic devices or systems over a given period of time.