IV. Operating loss carrybacks Select one: a.I and III only. b.I and IV only. c.II and III only. d.I, II, and III. 3. In determining whether to adjust a deferred tax asset, a company should Select one: a.pass a recognition threshold, after assuming that it will be audited by taxing authorities. b.take an aggressive approach in its tax planning. c.consider only the positive information in determining the need for an adjustment. d.consider all positive and negative information in determining the need for an adjustment
IV. Operating loss carrybacks Select one: a.I and III only. b.I and IV only. c.II and III only. d.I, II, and III. 3. In determining whether to adjust a deferred tax asset, a company should Select one: a.pass a recognition threshold, after assuming that it will be audited by taxing authorities. b.take an aggressive approach in its tax planning. c.consider only the positive information in determining the need for an adjustment. d.consider all positive and negative information in determining the need for an adjustment
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter9: Operating Activities
Section: Chapter Questions
Problem 2FIC
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Question
1. Under IFRS companies are required to provide a reconciliation between actual tax expense and the applicable tax rate. The purpose(s) of this reconciliation include
I. Making better prediction of future cash flow.
II. Predicating future
III. Assessing the composition of the net
IV. Assessing quality of earnings.
Select one:
b.I, III, and IV only.
c.I, II and IV only.
d.I and IV only.
2. Under IFRS deferred tax assets are recognized for
I. Deductible temporary differences.
II. Deductible permanent differences.
III. Operating loss carryforwards.
IV. Operating loss carrybacks
Select one:
a.I and III only.
b.I and IV only.
c.II and III only.
d.I, II, and III.
3. In determining whether to adjust a deferred tax asset, a company should
Select one:
a.pass a recognition threshold, after assuming that it will be audited by taxing authorities.
b.take an aggressive approach in its tax planning.
c.consider only the positive information in determining the need for an adjustment.
d.consider all positive and negative information in determining the need for an adjustment.
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