Module 4 - L1

When amounts recognised under tax expense are negative, how are they described?

What is the primary rationale for recognising 'deferred tax expense,' associated deferred tax assets and liabilities according to IAS 12?

Which of the following best describes the definition of current tax under IAS 12?

What are the two general approaches for calculating taxable profit (tax loss)?

Where should current tax be recognised for transactions recognised outside of profit or loss?

What is the final step an entity must undertake when recognising the amount of current tax?

According to IAS 12, if the amount already paid for current and prior periods exceeds the amount due, how should the excess be treated?

What does deferred tax primarily represent?

What is the first key step in calculating deferred tax as outlined in Table 4.4?

What is the definition of 'carrying amount' in the context of IAS 12?

What is a temporary difference?

Land has a carrying amount of $900,000 and a tax base of $600,000. What type of temporary difference exists and why?

An employee benefit liability has a carrying amount of $150,000 and a tax base of $0. What type of temporary difference exists?

What is a deferred tax asset primarily related to?

According to IAS 12, when should an entity recognize a deferred tax liability?

If economic benefits from recovering an asset will not be taxable, what equals the tax base of the asset?

A company receives rent in advance. For tax purposes, the revenue is recognized when earned. How is the tax base calculated?

Company A has a current liability with a carrying amount of $1,000 related to expenses that will be deductible for tax purposes when settled. What is the tax base of the liability?

Which of the following best defines a 'temporary difference' for deferred tax purposes?

What is the first step in determining whether a deferred tax amount arises?

Research costs are expensed when incurred but are deductible for tax purposes in a later period. How are these costs treated when identifying temporary differences?

What is the duration of all temporary differences?

What is the purpose of using a worksheet format to present the statement of financial position and tax base information?

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

What is substantive enactment in the context of tax rates, according to IAS 12?

Entity Q owns a machine with a carrying amount of $80,000 and a tax base of $50,000. In Entity Q's jurisdiction, the tax rate is 25% if assets are sold, and 35% for income generated through use. If Entity Q expects to recover the asset through use, what deferred tax liability should it recognize?

Entity R owns a building that was purchased for $200,000. For accounting purposes, it is depreciated over 10 years, and for tax purposes, over 8 years. The CGT cost base is $240,000. At the end of year 1, the entity expects to sell the asset in year 5. Which factor is most significant in determining the deferred tax implication?

Which of the following scenarios best describes a situation where the manner of recovery of an asset affects its tax base?

If the carrying amount of an asset is $100 and its tax base is $70, what type of temporary difference exists and what does it give rise to?

According to IAS 12, what is the tax base of an asset?

When does a deductible temporary difference arise?

If the settlement of a liability is fully tax deductible in the future, what is its tax base?

What fundamental principle does IAS 12 recommend entities consider when determining deferred tax assets or liabilities in complex scenarios?

Which of the following scenarios would result in a deferred tax asset?

When calculating deferred tax assets and deferred tax liabilities, what factor is multiplied by the temporary difference?

In what situation does no temporary difference arise?

If a company has a carrying amount for accounts receivable of $50,000 and a tax base of $50,000, and the future recovery of the principal is not taxable, what type of temporary difference exists?

For a liability, under what condition does a deductible temporary difference arise?

According to IAS 12, what is the fundamental principle regarding the accounting for income tax?

A company has already paid more tax than it owes for the current and prior periods. According to IAS 12, how should this be classified in the financial statements?

Which component is not a basis of deferred tax assets?

What constitutes 'tax expense' as presented in the statement of profit or loss and other comprehensive income?

Which of the following describes deferred tax liabilities?