Under IFRS: a. “probable” is defined as a level of likelihood of at least slightly more than 60%. b. a company should reduce a deferred tax asset when it is likely that some or all of it will not be realized by using a valuation allowance. c. a company considers only positive evidence when determining whether to recognize a deferred tax asset. d. deferred tax assets must be evaluated at the end of each accounting period.
Under IFRS: a. “probable” is defined as a level of likelihood of at least slightly more than 60%. b. a company should reduce a deferred tax asset when it is likely that some or all of it will not be realized by using a valuation allowance. c. a company considers only positive evidence when determining whether to recognize a deferred tax asset. d. deferred tax assets must be evaluated at the end of each accounting period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Under IFRS:
a. “probable” is defined as a level of likelihood of at least slightly more than 60%.
b. a company should reduce a
c. a company considers only positive evidence when determining whether to recognize a deferred tax asset.
d.
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