Explain how treatment of gains and losses on deferred tax assets and liabilities differ between the indirect and direct methods.

Question

Quizplus · Accepted Answer

The treatment of gains and losses on deferred tax assets and liabilities does not differ between the indirect and direct methods; these methods refer to different ways of presenting cash flows in the statement of cash flows, not to the treatment of deferred taxes.

Explain How Treatment of Gains and Losses on Deferred Tax