The carrying amount of deferred tax assets and deferred tax liabilities can change:

Question

Quizplus · Accepted Answer

The carrying amount of deferred tax assets and deferred tax liabilities can change with a change in the amount of related temporary differences. It can also change even without a change in temporary differences due to a change in tax rates or change in the expected settlement period. Additionally, a re-assessment of the recoverability of deferred tax liabilities can also lead to a change in the carrying amount of deferred tax assets and deferred tax liabilities. Therefore, both options A and B are correct making option D the best choice.

The Carrying Amount of Deferred Tax Assets and Deferred Tax