Statement 1: Taxable temporary differences are temporary differences that will result in taxable amounts in determining taxable profit (tax loss) of current periods when the carrying amount of the asset or liability is recovered or settled. Statement 2: Offsetting of current tax assets against current tax liabilities shall be allowed only if the enterprise has a legally enforceable right to set off the recognized amounts and intends to settle on a net basis, or to realize the asset and settle the liability simultaneously. Only Statement 2 is true. Only Statement 1 is true.
Statement 1: Taxable temporary differences are temporary differences that will result in taxable amounts in determining taxable profit (tax loss) of current periods when the carrying amount of the asset or liability is recovered or settled. Statement 2: Offsetting of current tax assets against current tax liabilities shall be allowed only if the enterprise has a legally enforceable right to set off the recognized amounts and intends to settle on a net basis, or to realize the asset and settle the liability simultaneously. Only Statement 2 is true. Only Statement 1 is true.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement 1: Taxable temporary differences are temporary differences that will result in taxable amounts in determining taxable profit (tax loss) of current periods when the carrying amount of the asset or liability is recovered or settled.
Statement 2: Offsetting of current tax assets against current tax liabilities shall be allowed only if the enterprise has a legally enforceable right to set off the recognized amounts and intends to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Only Statement 2 is true.
Only Statement 1 is true.
All statements are true.
All statements are false.
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