A change in tax rates does not require any change in the carrying amount of deferred tax assets and deferred tax liabilities.

Question

Quizplus · Accepted Answer

A change in tax rates can impact the carrying amount of deferred tax assets and deferred tax liabilities since they are calculated based on the current tax rate. A change in tax rate can result in a change in the future tax liability or tax benefit, affecting the carrying amount of deferred tax assets or deferred tax liabilities.

A Change in Tax Rates Does Not Require Any Change