Under IAS 12,where the Carrying Amount of an Asset Is

question 25

True/False

Under IAS 12,where the carrying amount of an asset is less than the amount that is economically recoverable,the deferred tax asset should be adjusted.

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Definitions:

Asset Revaluation

The process of increasing or decreasing the carrying value of an asset to reflect its current fair market value.

Fair Value

An estimate of the price at which an asset or liability could be bought or sold in a current transaction between willing parties.

Associate Company

A company in which another company owns a significant but not controlling percentage of its voting shares, typically between 20% and 50%.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its net assets, representing the company's reputation, customer base, and other non-quantifiable assets.