Module 4 - L3

According to IAS 12, when might a temporary difference arise when an asset is revalued?

When an asset is revalued upwards and the tax base remains unchanged, what type of temporary difference typically arises?

How do temporary differences impact the recognition of deferred tax assets or liabilities?

What is the effect on deferred tax if the tax base of a revalued asset is adjusted by a different amount than the revaluation increase?

Under IFRS, what happens if an asset's tax base and carrying amount are both $100 before an upward revaluation?

When the tax base of an asset is adjusted to reflect its revalued amount, what is the immediate impact on temporary differences?

When an entity purchases an asset, what is generally the initial relationship between the asset's tax base and its cost?

How does claiming tax depreciation each period affect the tax base of an asset over time?

When the carrying amount of a revalued asset is expected to be recovered through use, how is the tax base affected by the revaluation?

What gives rise to a taxable temporary difference when a revalued asset is used to provide goods and services?

If an entity expects to recover the carrying amount of an asset by using it, where is the deferred tax relating to the revaluation recognized according to IAS 12?

If an asset had not been revalued, where would the deferred tax liability be recognized?

When an entity expects to recover the carrying amount by selling the asset, what is the general tax treatment of proceeds that reflect recovered tax depreciation?

How are the proceeds from the sale of an asset generally divided?

If an asset is sold for its revalued amount, and capital gains tax applies, on what amount is the capital gains tax calculated?

In a regime where there is no capital gains tax, how are the sale proceeds in excess of the initial cost treated?

What happens to the tax base and carrying amount of an asset after it is sold?

What is the initial tax base of an asset when an entity first purchases it?

When an entity expects to recover the carrying amount of an asset through sale and capital gains taxes are not applicable, what primarily gives rise to a taxable temporary difference?

In a scenario where capital gains tax applies, what components make up the $150 sales proceeds from an asset that has been revalued to $150?

When capital gains taxes are applicable and an entity expects to recover the carrying amount of an asset through sale, what two components together make up the future taxable income?

How does the expected manner of recovering the carrying amount of an asset affect the deferred tax liability?

What is the key implication of IAS 12 paragraph 51B regarding a non-depreciable asset revalued according to IAS 16?

A piece of land with a cost of $100 is revalued to $150. If the tax rate applicable to sale is 20%, and the tax rate applicable to use is 30%, what tax rate is used to calculate the deferred tax liability?

A piece of land with a cost of $100 is revalued to $150. If tax rate applicable from sale is 20%. What is the deferred tax liability?

When the carrying amount is expected to be recovered by using the asset and capital gains taxes are not applicable, the entity is likely to generate future taxable income through sale equal to the _________.

When the carrying amount is expected to be recovered by using the asset and capital gains taxes are not applicable, the future amount deductible against that taxable income is the_________.

When the carrying amount is expected to be recovered by selling the asset and capital gains taxes are applicable, the entity is likely to generate future taxable income through sale equal to the taxable capital gain component of _________ the initial cost.

When an asset is revalued upwards and the tax base is adjusted by the same amount, what is the impact on temporary differences?

If a tax jurisdiction does not allow the tax deduction to be altered in response to a revaluation, how is the taxable temporary difference calculated?

When the carrying amount is expected to be recovered by selling the asset and capital gains taxes are applicable, the future amount deductible against that taxable income is the _________.

According to IAS 12, how should current or deferred tax be recognized when it relates to items credited or charged directly to equity?

Where should a revaluation increase be recognized, according to IAS 16?

In relation to a non-depreciable asset revalued, the tax consequences to consider (including the tax rates to apply to calculate the deferred tax) are those that would follow from the recovery of the carrying amount of that asset through _________.

An asset is revalued upwards by $80, and the tax rate is 30%. If the revaluation increase is recognized in OCI, what is the amount of deferred tax liability to be recognized?

What is the after-tax amount of a revaluation increase of $80, recognized in the revaluation surplus, if the deferred tax liability is $24?

For a non-depreciable asset, the rate that is applicable when calculating any deferred tax implications is the tax from _________.

If an entity transfers a portion of the revaluation surplus to retained earnings as the revalued assets are used, how does IAS 12 specify the amount should be transferred?

What is the basis for calculating the tax base, according to IAS 12 paragraph 51, when determining temporary differences related to assets and liabilities?

A depreciable asset is revalued to $150. Immediately before revaluation, its carrying amount was $80, and the tax written-down value was $70. What is the temporary difference if the asset is expected to be recovered through use?

Which of the following best describes the principle adopted by IAS 12 for accounting for the tax effects of a transaction?

What is the appropriate accounting treatment for a revaluation increase that reverses a previous decrement recognized in profit or loss?

According to paragraph 41 of IAS 16, what option is offered to entities regarding the revaluation surplus?

In a jurisdiction where the tax treatment differs between assets held for use and assets held for sale, what impact does this have on the temporary difference arising from a revaluation?

What is the effect on the financial statements of recognizing a deferred tax liability related to a revaluation increase?

If cumulative depreciation of $30 was previously allowed for tax purposes, what happens when an asset is revalued upwards?

Under IAS 12, how should deferred tax related to items recognized in other comprehensive income (OCI) be treated?

According to IAS 12, what should deferred tax assets and liabilities be measured using?

When an asset is revalued, and the tax base of the asset is adjusted by the same amount as the change in the carrying amount, what is the result?

If the revaluation of an asset is recognized in OCI, where is the related deferred tax recognized?

What is the primary objective of the presentation and disclosure requirements of IAS 12?

According to IAS 1, how should deferred tax assets and deferred tax liabilities be presented in the statement of financial position?

Which of the following is not a required disclosure under IAS 12?

When measuring deferred tax liabilities and assets, an entity should consider:

ABC Ltd. has a machine with a carrying amount of $500,000 and a tax base of $300,000. The applicable tax rate is 25%. What is the amount of the deferred tax liability?

Which of the following is the correct accounting treatment for revaluation surplus?

ABC Ltd. has unused tax losses of $1,000,000. They believe it is probable that future taxable profits will be available to utilize $600,000 of these losses. The tax rate is 30%. What amount of deferred tax asset should be recognized?

According to the provided text, what is a taxable or deductible temporary difference?

ABC Ltd. has a current tax liability of $191,500 in 20X1. Where is this amount presented in the financial statements?

In Example 4.16, ABC Ltd. recognizes a receivable of $100,000 for accrued interest revenue, which is taxable when received in cash. How does this impact the deferred taxes?

ABC Ltd. incurred a statutory fine of $50,000 for violating environmental laws. This fine is non-deductible for tax purposes. How should this fine be treated?

Under what conditions can current tax assets and liabilities be presented as a single net amount in the statement of financial position?

What is a critical factor in deciding whether to recognize a deferred tax asset related to unused tax losses?

According to IAS 12, what information about deductible temporary differences and unused tax losses must be disclosed in the notes to the financial statements when no deferred tax asset is recognized?

What is the main objective of the presentation and disclosure requirements within IAS 12 concerning income taxes?

When can deferred tax assets and deferred tax liabilities be offset in the statement of financial position?

What specific explanation must be provided in the notes to the financial statements regarding the relationship between accounting profit and tax expense (income)?

Why might a deferred tax liability not be recognised on the unremitted earnings of subsidiaries?

What is the implication of unused tax losses not being recognized as a deferred tax asset?

What triggers a deferred tax liability related to translating financial statements of a group's subsidiaries?

What is a potential benefit of implementing technologies like Ernst & Young’s Automated Ledger Review Tool in the context of income tax reporting?

What component decreases the current tax expense according to the reconciliation of accounting profit?

Which of the following statements is true regarding the relationship between tax expense and accounting profit?

In the reconciliation process, what is the first step mentioned?

What is generally added to the accounting profit to arrive at taxable profit?

What is the prima facie tax rate used in the examples provided?

Which component can cause a difference between accounting profit and taxable income?

How is the deferred tax expense related to tax benefits from prior unrecognised tax losses calculated?

What is the effect of local tax rate changes on total income tax expense?

What should be included in the related notes to the financial statements concerning tax expense?

What term refers to tax computed at the standard tax rate applied to accounting profit before tax?

Which of the following represents a liability relating to deferred tax?

What should be considered when determining the relationship between tax expense and profit?

Under what conditions can current tax assets and liabilities be presented as a single net amount?

What is the required disclosure for the components of tax expense in financial statements?

Which line item reflects the combined tax outcomes for current and deferred taxes?

What key condition must be met for deferred tax assets and liabilities to be offset?

Which expense was added to the taxable profit for the year ended 30 June 20Y0?

What does the deferred tax liability on the statement of financial position represent?

How is income tax expense presented in the profit and loss statement according to IAS 1?

Which of the following items should NOT be added back to accounting profit to arrive at taxable profit?

What is required for the reconciliation of tax expense and accounting profit according to IAS 12?

What is included in the presentation of deferred tax assets and liabilities?

In the reconciliation of tax expense to accounting profit, what is the tax impact of non-deductible expenses likely to cause?

What basis is required for the calculation of applicable tax rates in reconciliations?

What must be disclosed regarding unrecognized deferred tax assets and liabilities?

Regarding deferred tax liabilities for property, plant, and equipment, what does a negative figure indicate?

What is one of the fundamental purposes of presenting information about temporary differences?

Under IAS 12, what is the significance of presenting both applicable and effective tax rates?

How should the tax effect of non-deductible expenses be calculated for reconciliation?

Which item is NOT typically a temporary difference leading to deferred tax?

What does the average effective tax rate represent in financial reporting?

Why is it considered important to understand the nature of each type of temporary difference?