QUIZLET FOR IA2

TOPIC: CHAPTER 16 – ACCOUNTING FOR INCOME TAX

Public and nonpublic entities I: Which entities are required to apply deferred tax accounting
Tax expense I: It is the aggregate amount included in the determination of net income for the
period in respect of current tax and deferred tax
True Tax assets and liabilities shall presented separately from other assets in the statement of
financial position
False Deferred tax assets and liabilities shall be discounted
True Deferred tax assets and liabilities shall be distinguished from current tax assets and
liabilities
True When an entity makes distinction between current and non current assets and liabilities, it
shall classify deferred tax assets and liabilities as noncurrent
False The tax bases of major items on which deferred tax has been calculated shall be disclosed
True The amount of taxable temporary differences associated with investments in subsidiaries
and associates for which no deferred tax liability is recognized shall be disclosed
True The amount of income tax to each component of other comprehensive income shall be
disclosed
True Deferred tax asset and liability may only be classified as noncurrent
Recognition of asset and liability I: Justification for the method of determining periodic tax
expense is based on this concept
Future taxable amountI: Expenses or losses that are deductible after they are recognized in
accounting income would result in ____.
Deferred tax liability Excess of tax depreciation over accounting depreciation would result in
___.
Deferred tax asset Rent received in advance included in taxable income at time of receipt but
deferred for accounting purposes would result in ___.
Non-current liability At current year-end, an entity had a deferred tax liability that exceeded a
deferred tax asset which is expected to reverse in the next year, so what should be reported in the
current year end financial position?
Interperiod tax allocation Recognizes an asset or liability for the tax consequences of
temporary differences that exist at year-end
Intraperiod tax allocation Associates tax effect with different items in the income statement