Where the Value of an Investment in a Subsidiary Increases,a

question 33

Multiple Choice

Where the value of an investment in a subsidiary increases,a deferred tax liability is generally not required to be recognised when:

• A) it is unlikely that profits of the subsidiary will be distributed as dividends.
• B) it is unlikely that the subsidiary investment will be sold.
• C) both A and B.
• D) none of the above.

---

Definitions:

Foreign Power

Typically refers to a country or an entity that has influence, control, or authority outside of its own borders.

Plague

An infectious disease that can cause high mortality rates and have significant impacts on populations, historically and in modern times.

Indigenous Population

People who are the original inhabitants of a region, possessing distinct cultural, linguistic, and historical traditions, before the colonization or formation of a state boundary.

Race

A social construct categorizing humans based on physical characteristics, ancestry, and genetics, often influencing socio-political and economic structures.