alleryStart learning →The benefit of a tax loss that can be carried back to recover earlier current tax is recognised as an:
AA reserve in equity
BA contingent liability
CA current tax asset
DDeferred income item
Answer & Solution
Correct answer: C. A current tax asset
The benefit is probable and reliably measurable, so it is shown as an asset in the period of the loss.
Keep practising Ind AS 12 Income Taxes
Browse all Ind AS 12 Income Taxes questions for CA Final, or explore more Financialreporting topics.
Related questions
Deferred tax accounting is relevant to which accounting principle?A permanent difference in accounting versus tax treatment gives rise to:Tax-related contingent liabilities, such as disputes with tax authorities, follow:An entity's accounting profit is Rs. 2,500 and the domestic rate is 30%. Tax at the domestThe average effective tax rate equals tax expense divided by:What can make tax expense differ from profit times the rate?A deferred tax asset reliant on future profits needs evidence disclosure when the entity hFor unrecognised subsidiary-investment liabilities, disclose the: