Deferred Tax balances are discounted when their underlying temporary differences are material or are expected to reverse out many years into the future.

Question

Quizplus · Accepted Answer

Deferred Tax balances are not discounted, regardless of the materiality of the temporary differences or the expected timing of their reversal, according to accounting standards such as IFRS and US GAAP.

Deferred Tax Balances Are Discounted When Their Underlying Temporary Differences