Under IFRS when a change in the tax rates is enacted
I.Companies should record its effect on existing deferred tax accounts immediately.
II.Companies report the effect of changes in tax rates on deferred tax accounts in the period the new rate becomes effective.
III.Companies report the effect of changes in tax rates on deferred tax accounts that arise in future periods when the new tax rates are in effect.

Question

Quizplus · Accepted Answer

Under IFRS, companies are required to recognize the effect of a change in tax rates on deferred tax accounts immediately when the change is enacted, not when it becomes effective.

Under IFRS When a Change in the Tax Rates Is