alleryStart learning →Goodwill of Rs. 100 with a nil tax base is impaired by Rs. 20. The reduced unrecognised liability is:
ANow recognised
BRecognised at half
CStill not recognised
DCharged to equity
Answer & Solution
Correct answer: C. Still not recognised
Subsequent reductions in an unrecognised liability from initial goodwill are also treated as arising from initial recognition, so stay unrecognised.
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: