Tax rates other than the current tax rate may be used to calculate the deferred income tax amount on the balance sheet if

Question

Quizplus · Accepted Answer

Only future tax rates that have been enacted into law can be used to calculate the deferred income tax amount on the balance sheet. Probable or likely future tax rate changes that have not been enacted into law should not be used when recording deferred income taxes.

Tax Rates Other Than the Current Tax Rate May Be