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CA Final Ind AS 12 Income Taxes — practice questions

Explore 89 free Ind AS 12 Income Taxes questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 12 Income Taxes questions and exercises with answers

Showing questions 1–30 of 89.

A machine cost Rs. 100 and Rs. 30 tax depreciation has been deducted so far. What is its tax base?Read the answer and worked solution →Interest receivable of Rs. 100 will be taxed only when received in cash. Its tax base is:Read the answer and worked solution →Trade receivables of Rs. 100 relate to revenue already included in taxable profit. Their tax base is:Read the answer and worked solution →Dividends receivable from a subsidiary, carrying Rs. 100, are not taxable. Their tax base is:Read the answer and worked solution →Accrued expenses of Rs. 100 will be deducted for tax only when paid in cash. Their tax base is:Read the answer and worked solution →Interest received in advance of Rs. 100 was already taxed on a cash basis. Its tax base is:Read the answer and worked solution →A loan payable of Rs. 100 has repayment with no tax consequences. Its tax base is:Read the answer and worked solution →Preliminary expenses, expensed now but deductible later, create a:Read the answer and worked solution →Accounting profit is defined as profit or loss for a period before deducting:Read the answer and worked solution →Taxable profit is the profit for a period determined according to the rules of the:Read the answer and worked solution →Current tax is income tax payable on the:Read the answer and worked solution →Deferred tax liabilities are income taxes payable in future periods in respect of:Read the answer and worked solution →Which does NOT give rise to a deferred tax asset?Read the answer and worked solution →A temporary difference is the difference between an item's carrying amount and its:Read the answer and worked solution →Tax expense (tax income) in Ind AS 12 comprises:Read the answer and worked solution →Ind AS 12 does not deal with the methods of accounting for:Read the answer and worked solution →Current tax for current and prior periods, to the extent unpaid, is recognised as a:Read the answer and worked solution →The benefit of a tax loss that can be carried back to recover earlier current tax is recognised as an:Read the answer and worked solution →A deferred tax liability is NOT recognised on a difference from:Read the answer and worked solution →Why is no liability recognised on initial goodwill?Read the answer and worked solution →Cost Rs. 150, carrying Rs. 100, tax depreciation Rs. 90, rate 25%. Deferred tax liability?Read the answer and worked solution →An asset costing Rs. 150 has cumulative tax depreciation of Rs. 90. What is its tax base?Read the answer and worked solution →Interest accrued in accounting profit but taxed only when collected gives rise to a:Read the answer and worked solution →When tax depreciation is accelerated compared with accounting depreciation, the result is a:Read the answer and worked solution →Capitalised development costs deducted for tax when incurred have a tax base of:Read the answer and worked solution →Fair value uplift with unchanged tax base gives:Read the answer and worked solution →Revalued asset stays in use. Is a deferred tax liability recognised?Read the answer and worked solution →Goodwill of Rs. 100 with a nil tax base is impaired by Rs. 20. The reduced unrecognised liability is:Read the answer and worked solution →Non-deductible Rs. 1,000 asset, 40% rate: is the Rs. 400 liability booked?Read the answer and worked solution →For a convertible bond, deferred tax on its equity component is charged:Read the answer and worked solution →

Worked practice questions

A machine cost Rs. 100 and Rs. 30 tax depreciation has been deducted so far. What is its tax base?

  1. Rs. 130
  2. Rs. 70
  3. Rs. 100
  4. Rs. 30
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Correct answer: B. Rs. 70

Cost less depreciation already deducted for tax leaves 100 - 30 = Rs. 70 still deductible in future.

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Interest receivable of Rs. 100 will be taxed only when received in cash. Its tax base is:

  1. Rs. 100
  2. Rs. 200
  3. Rs. 50
  4. Nil
Show answer and solution

Correct answer: D. Nil

Because the interest is taxed only on receipt, nothing is deductible against it, so the tax base is nil.

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Trade receivables of Rs. 100 relate to revenue already included in taxable profit. Their tax base is:

  1. Nil
  2. Rs. 100
  3. Rs. 50
  4. Rs. 150
Show answer and solution

Correct answer: B. Rs. 100

The revenue is already taxed, so the whole carrying amount is deductible against future benefits and the tax base equals Rs. 100.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment PropertyInd AS 103 Business Combinations