Criteria Used by an Entity to Assess the Probability That

question 42

Multiple Choice

Criteria used by an entity to assess the probability that taxable profit will be available against which unused tax losses can be utilised include:

• A)whether the unused tax losses result from identifiable causes that are unlikely to recur.
• B)whether it is probable that the entity will have taxable profits before the unused tax losses expire.
• C)whether permission has been received from the Taxation Authorities to carry forward tax losses.
• D)whether the entity has unused tax losses relating to the same taxation authority and the same taxable entity, which will result in taxable amounts against which the unused tax losses can be utilised before they expire.

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Definitions:

Operant Conditioning

A system of education where the level of a response is modified through reinforcement or deterrents.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to a learned response.

Primary Reinforcer

A stimulus that satisfies a basic survival need and is inherently reinforcing without learning, such as food, water, or warmth.

Negative Reinforcement

involves the strengthening of a behavior because a negative condition is stopped or avoided as a consequence of the behavior.