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Which of the Following Is False Regarding Accounting for Deferred

Question 125

Multiple Choice

Which of the following is false regarding accounting for deferred taxes under IFRS?


A) A deferred tax liability is classified as current or noncurrent based on the classification of the asset or liability to which it relates.
B) A deferred tax asset is recognized up to the amount that is probable to be realized.
C) Tax effects of certain items are recognized in equity.
D) The rate used to compute deferred taxes is either the enacted tax rate, or a substantially enacted tax rate (virtually certain) .

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