In Activity 12.A, the balance on the deferred tax liability account is growing every year over the
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In Activity 12.A, the balance on the deferred tax liability account is growing every year over the five-year period and, if tax conditions remain stable and annual investment continues to rise, then it will continue to grow. Could it be argued that, because the liability seems not to be leading to an outflow of resources, it fails to meet the IASB definition of a liability?
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Financial Accounting An International Introduction
ISBN: 9781292102993
6th Edition
Authors: David Alexander, Christopher Nobe
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