alleryStart learning →Deferred tax balances must be measured at tax rates that are:
AMerely proposed by a panel
BAveraged over the last five years
CPrevailing at transaction date
DSubstantively enacted by year end
Answer & Solution
Correct answer: D. Substantively enacted by year end
Measurement uses rates and laws enacted or substantively enacted by the balance sheet date.
Keep practising AS 22 Taxes on Income
Browse all AS 22 Taxes on Income questions for CA Inter, or explore more Accounting topics.
Related questions
The financial statements recognise the tax effect of which transactions?Section 43B allows certain expenses such as taxes, duty, cess and fees on which basis?A difference in depreciation method, such as SLM against WDV, between books and tax is a:Payments to non-residents disallowed under section 40(a)(i) until tax is deducted give a:Income spread over several years in the accounts but fully taxed on receipt creates a:Income credited to the profit and loss statement but taxed only in later years creates a:If an asset's tax base is lower than its book value, the company recognises a:A bad debts provision is expensed in books but tax relief comes only when it is utilised.