ANSWER QUESTIONS

Carryforward of currently unused tax losses and tax credits affects the
True
amount reported as deferred tax asset or liability.
An entity shall recognize a deferred tax liability for all temporary
differences that are expected to reduce taxable profit in the future.
False
Deferred tax liability is expected to increase taxable profit.

An entity shall measure a deferred tax liability (asset) using the tax rates
and laws that have been enacted or substantively enacted at the end of the
False year.

Should use the rate enacted at the reporting date.

True Tax basis are enacted or substantially enacted by the law.

An equity instrument issued by the entity may not give rise to deductions
in a future period.
False
An equity instrument issued by the entity may also give rise to
deductions in a future period.

Permanent difference arises from the difference between the carrying

amounts and tax bases on the initial recognition of assets and liabilities.
False

Temporary difference
An entity shall recognize a deferred tax asset for all temporary differences
True
that are expected to reduce taxable profit in the future.
A deferred tax liability for the carryforward of unused tax losses and
unused tax credits.
False

Deferred tax asset

An entity shall not recognize a deferred tax liability for a temporary
True
difference associated with the initial recognition of goodwill.

If the temporary difference arises from an item of income that is expected

True to be taxable as a capital gain in a future period, the deferred tax expense
is measured using the capital gain tax rate.

An entity shall recognize a valuation allowance against deferred tax assets

True so that the net carrying amount equals the highest amount that is more
likely than not to be recovered based on current or future taxable profit.

True An entity shall not discount current or deferred tax assets and liabilities.
False An entity shall measure current and deferred taxes at the tax rate
applicable to undistributed profits after the entity recognizes a liability to
pay a dividend.
 An entity shall measure current and deferred taxes at the tax rate
applicable to undistributed profits until the entity recognizes a
liability to pay a dividend.
When an entity pays dividends to its shareholders, it may be required to
pay a portion of the dividends to taxation authorities on behalf of
shareholders. Such an amount paid or payable to taxation authorities is
recorded as expense.
False
When an entity pays dividends to its shareholders, it may be
required to pay a portion of the dividends to taxation authorities on
behalf of shareholders. Such an amount paid or payable to taxation
authorities is charged to equity as a part of the dividends.
An entity may not offset current tax assets and current tax liabilities
False
An entity may offset current tax assets and current tax liabilities