What kinds of temporary differences related to income taxes can arise under IFRS that don't occur under U.S. GAAP?
A) Book and tax differences related to the amortization of property, plant, and equipment for book purposes and cost method for tax purposes.
B) Book and tax differences related to the calculation of impairments for book purposes with adjustment for tax purposes.
C) Book and tax differences related to the revaluation of property, plant, and equipment for book purposes and cost method for tax purposes.
D) Book and tax differences related to the calculation of contingent liability for book purposes with no like adjustment for tax purposes.

Question

Quizplus · Accepted Answer

Under IFRS, revaluation of property, plant, and equipment is allowed and can result in temporary differences between book and tax purposes. This is not allowed under U.S. GAAP. Options A and B are applicable under both IFRS and U.S. GAAP, while option D is not specific to temporary differences related to income taxes.

What Kinds of Temporary Differences Related to Income Taxes Can