Which of the Following Statements Is Correct with Respect to AASB

question 74

Multiple Choice

Which of the following statements is correct with respect to AASB 112 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.

---

Definitions:

Model Airplanes

Miniature replicas of airplanes designed either for collecting or as a hobby to assemble, often used in the context of model building or flying.

Valued

Appreciated or considered of high worth, especially in a monetary or material sense.

Housing Prices

The amount of money required to purchase residential properties, which can fluctuate based on supply, demand, and economic conditions.