Which of the following statements is not correct in relation to tax rate changes?

Question

Quizplus · Accepted Answer

A decrease in tax rates does not inherently create income where an entity has deferred tax assets. Instead, it reduces the value of deferred tax assets, as the future tax savings associated with these assets would be calculated using the lower tax rate. This could potentially lead to a decrease in income or an increase in expense due to the write-down of the asset's value.

Which of the Following Statements Is Not Correct in Relation