Under IAS 12, Current and Deferred Taxes Are Measured on the Basis

question 13

Multiple Choice

Under IAS 12, current and deferred taxes are measured on the basis of:

• A) rates that have been enacted or substantively enacted by the balance sheet date.
• B) current rates and rates anticipated when temporary differences reverse.
• C) rates anticipated when temporary differences reverse.
• D) rates prevailing when the entity provided goods or services.

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Definitions:

Interest Rate

The proportion of a loan charged as interest to the borrower, typically expressed as an annual percentage.

Effective Yield

The total yield on an investment after considering the effects of compounding interest or dividends over a specific period.

Simple Annualized

A calculation estimating yearly returns by extrapolating non-annual data without accounting for compounding effects.

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a specified period, accounting for both income and capital gains.