Unless a Company Has a Legal Right of Set-Off, IAS

question 24

Multiple Choice

Unless a company has a legal right of set-off, IAS 12 Income Taxes, requires disclosure of all of the following information for deferred tax statement of financial position items:
I The amount of deferred tax assets recognised.
II The amount of the deferred tax liabilities recognised.
III The net amount of the deferred tax assets and liabilities recognised.
IV The amount of the deferred tax asset relating to tax losses.

• A) I, II and IV only
• B) I, II and III only
• C) III and IV only
• D) IV only.

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Definitions:

Net Operating Income

The profit generated from a company's normal business operations, calculated as revenues minus operating expenses, excluding interest and taxes.

Flexible Budget

A pliable budget framework that modifies itself following changes in operational intensity or volume.

Units

In business or manufacturing, units refer to the individual pieces or quantities produced or sold.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding deductions for interest and taxes.