Under IFRS for a given year if income taxes payable is less than income tax expenses, a deferred tax liability is recorded.

Question

Quizplus · Accepted Answer

This is true because the difference between income taxes payable and income tax expenses indicates that there are timing differences in the recognition of income and expenses for tax and accounting purposes. This leads to the recognition of a deferred tax liability, as the company will have to pay more taxes in the future when these timing differences reverse.

Under IFRS for a Given Year If Income Taxes Payable