Which of the Following Disclosures Are Optional Under IAS 12

question 23

Multiple Choice

Which of the following disclosures are optional under IAS 12?

• A) the major components of income tax expense;
• B) the aggregate current tax or deferred tax that arises relating to items that are charged or credited directly to equity;
• C) the amount of deductible temporary differences and unused tax losses, for which no deferred tax asset is recognised in the statement of financial position;
• D) a numerical reconciliation between the average effective tax rate and the applicable tax rate, disclosing also the basis of calculating the applicable tax rate.

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Definitions:

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes (scenarios).

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a specific dependent variable under a given set of assumptions.

Cash Flow Forecasts

Predictions about future cash inflows and outflows of a business over a specific period.

Forecasting Risk

Forecasting risk involves the uncertainty in predicting future values of a variable or future occurrences of events, affecting planning and decision-making in businesses.