Under AS 22, deferred tax assets and liabilities are measured using wh…

Question

Under AS 22, deferred tax assets and liabilities are measured using which tax rates?

Accepted Answer

D. Rates enacted or substantively enacted by the balance sheet date

1. AS 22 requires deferred tax to reflect the tax effect expected when differences reverse.
2. It uses tax rates and laws enacted or substantively enacted by the balance sheet date.
3. Future speculative or average historical rates are not used.
_Source: ICAI BoS CA Intermediate Paper 1 (Advanced Accounting), Sept 2025 — Q.1(a), AS 22 Accounting for Taxes on Income._

Answer

The simple average of the previous five years' tax rates

Answer

The rates expected roughly ten years into the future period

Answer

The highest slab rate appearing in the tax statute book