Module 4 - L2

According to IAS 12, under what condition is a deferred tax asset arising from a deductible temporary difference recognized?

What is generally accepted meaning of 'probable' according to IAS 37, which can be used to assist in understanding IAS 12?

What is the primary source of taxable profit, according to paragraph 28 of IAS 12?

According to IAS 12, what are 'tax planning opportunities'?

Which of the following factors does HIJ Investments PLC use to determine the probability of future utilization of deductible temporary differences, as of December 31, 20X1?

What should HIJ Investments PLC consider when determining whether there are sufficient taxable temporary differences?

Under what circumstance can an entity create taxable profit according to IAS 12?

What is the treatment for an entity with a history of tax losses discussed in?

A deductible temporary difference can be used against the resulting taxable profit when...

What is NOT directly mentioned in the text as a method to improve the reliability of professional judgement by preparers?

In 20X1, an entity identifies a taxable temporary difference of $100,000, expected to reverse in future years. What is the remaining taxable temporary difference at the end of 20X2?

According to IAS 12, under what condition should a deferred tax asset be recognized?

An entity has a deductible temporary difference of $60,000 and a tax rate of 30%. What is the deferred tax asset?

In 20X3, an entity expects to reverse a taxable temporary difference of $55,000. Assuming a tax rate of 30%, what is the related deferred tax liability?

What is the primary factor to consider when determining whether to recognize a deferred tax asset?

If an entity has both deductible and taxable temporary differences, how are they generally presented?

For the year ended 31 December 20X1, an entity's taxable profit was $nil. What impact does this have on the recognition of a deferred tax asset?

When determining the probability of future taxable profits, what should an entity consider?

What is the purpose of recognizing deferred tax assets and liabilities?

How does the reversal of temporary differences affect an entity's taxable income?

According to IAS 12, how does the standard treat the recognition of deferred tax liabilities or assets arising from the initial recognition of an asset or liability in a non-business combination transaction?

In a jurisdiction where reductions in the carrying amount of goodwill are not deductible for tax purposes, and the cost of goodwill is not deductible when a subsidiary disposes of its business, what is the typical tax base of goodwill?

Why does IAS 12 not permit the recognition of a deferred tax liability resulting from the difference between the carrying amount of goodwill and its tax base?

An entity purchases machinery for $100, but the maximum tax deduction allowed is $60. How is this transaction recorded according to IAS 12, paragraph 15(b)?

Under what condition should a deferred tax asset be recognized for deductible temporary differences?

What is a key consideration when applying the recognition criteria to deferred tax assets arising from deductible temporary differences?

In which of the following situations would deferred tax assets typically not be recognized?

An entity purchases an asset for $1,000. For tax purposes, the asset has a tax base of $1,200 on initial recognition. How does IAS 12 address this situation?

According to IAS 12, for which of the following taxable temporary differences is a deferred tax liability generally recognized?

An entity has unused tax losses. Under what condition should a deferred tax asset be recognized for the carryforward of these losses?

Under IAS 12, in which scenario is the recognition of a deferred tax liability specifically prohibited?

Which condition must be met for the exception regarding the initial recognition of an asset or liability to apply, such that no deferred tax liability is recognized?

What potential impact could result from adjustments made to financial statements, in the absence of the exemption contained in paragraph 15(b)?

In the context of deferred tax liabilities, what is the primary accounting standard that governs the recognition and measurement of goodwill arising from a business combination?

An entity recognizes an asset. According to IAS 12, under which of the following scenarios would the initial recognition of this asset lead to the recognition of a deferred tax liability?

According to IAS 12, what is a critical factor in determining whether to recognize a deferred tax liability related to the initial recognition of an asset or liability?

When should a deferred tax liability related to taxable temporary differences associated with investments in subsidiaries, branches, and associates be recognized?

Which scenario exemplifies a situation where a deferred tax liability would not be recognized due to exceptions defined in IAS 12?

An entity acquires a subsidiary. During consolidation, the fair value of the subsidiary's equipment exceeds its tax base, creating a taxable temporary difference of $100,000. Simultaneously, goodwill is recorded at $50,000 due to the business combination. How does IAS 12 guide the accounting treatment for the deferred tax implications?

Entity A is considering a transaction that involves the initial recognition of a new asset. According to IAS12, which conditions would permit Entity A not to recognize a deferred tax liability?