Question 1

A deferred tax asset will result when:

Accepted Answer

A)  the carrying amount of an asset is greater than the asset's tax base
B)  the carrying amount of a liability is greater than the liability's tax base
C)  the carrying amount of an asset is less than the asset's tax base
D)  both B and C

Question 2

Explain the concept of the tax base of an asset and how it is calculated.

Accepted Answer

AASB 112 para.7 states that the tax base...

Question 3

The tax base for a liability is calculated as :

Accepted Answer

A)  Carrying amount minus Future taxable amount minus Future deductible amount
B)  Carrying amount minus Any further deductible amount for tax
C)  Carrying amount minus Future taxable amount plus Future deductible amount
D)  Carrying amount plus Any further deductible amount for tax

Question 4

An example of an excluded taxable temporary difference is:

Accepted Answer

A)  accrued interest
B)  goodwill
C)  provision for warranties
D)  prepaid insurance

Question 5

Explain the tax- payable method of paying income tax.

Accepted Answer

The tax- payable method of paying income...

Question 6

Identify the steps to apply AASB 112.

Accepted Answer

The following steps summarise the discus...

Question 7

Explain the concept of tax losses and the required accounting treatment according to AASB 112.

Accepted Answer

If a company incurs a tax loss-that is,a...

Exam 5: Accounting for Company Income Tax

Explain the concept of the tax base of an asset and how it is calculated.

Correct Answer
verified
AASB 112 para.7 states that the tax base...
View Answer

Explain the tax- payable method of paying income tax.

Correct Answer
verified
The tax- payable method of paying income...
View Answer

A deferred tax asset will result when:

Correct Answer
verified

The tax base for a liability is calculated as :

Correct Answer
verified

Identify the steps to apply AASB 112.

Correct Answer
verified
The following steps summarise the discus...
View Answer

An example of an excluded taxable temporary difference is:

Correct Answer
verified

Explain the concept of tax losses and the required accounting treatment according to AASB 112.

Correct Answer
verified
If a company incurs a tax loss-that is,a...
View Answer

Exam 5: Accounting for Company Income Tax

Explain the concept of the tax base of an asset and how it is calculated.

Correct AnswerverifiedAASB 112 para.7 states that the tax base...View AnswerShow Answer

Explain the tax- payable method of paying income tax.

Correct AnswerverifiedThe tax- payable method of paying income...View AnswerShow Answer

A deferred tax asset will result when:

Correct AnswerverifiedShow Answer

The tax base for a liability is calculated as :

Correct AnswerverifiedShow Answer

Identify the steps to apply AASB 112.

Correct AnswerverifiedThe following steps summarise the discus...View AnswerShow Answer

An example of an excluded taxable temporary difference is:

Correct AnswerverifiedShow Answer

Explain the concept of tax losses and the required accounting treatment according to AASB 112.

Correct AnswerverifiedIf a company incurs a tax loss-that is,a...View AnswerShow Answer

Correct Answer
verified
AASB 112 para.7 states that the tax base...
View Answer

Correct Answer
verified
The tax- payable method of paying income...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The following steps summarise the discus...
View Answer

Correct Answer
verified

Correct Answer
verified
If a company incurs a tax loss-that is,a...
View Answer