Under IAS 12 Incomes Taxes, deferred tax assets and liabilities are measured at the tax rates that:
A) applied at the beginning of the reporting period;
B) at the end of the reporting period;
C) at the rates that prevail at the reporting date;
D) are expected to apply when the asset is realised or the liability is settled.

Question

Quizplus · Accepted Answer

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply when the asset is realised or the liability is settled. This is based on the assumption that the temporary differences will reverse in the future and the tax rates that will apply at that time will be used to calculate the tax impact.

Under IAS 12 Incomes Taxes, Deferred Tax Assets and Liabilities