[26] Tax rates other than the current tax rate may be used to calculate the future income tax amount on the SFP if

Select one:

a.

it is probable that a future income tax rate change will occur.

b.

it appears likely that a future income tax rate will be higher than the current tax rate.

c.

the future income tax rates have been enacted or substantively enacted into law.

d.

it appears likely that a future income tax rate will be less than the current tax rate.

e.

it appears likely that the use of such other rates could establish a reduction of future income tax liability for the firm.

[23] According to IFRS, the pension obligation should be based on

Select one:

a.

the remaining years of serviceboth vested and non-vestedusing future salary levels.

b.

all years of serviceboth vested and non-vestedusing current salary levels.

c.

only the vested benefits using current salary levels.

d.

both vested and non-vested service using future salaries.

e.

the equation as prescribed under the tax law.

[19] A deferred tax asset exists when

Select one:

a.

the book basis of assets is greater than the tax basis of assets.

b.

the book basis of liabilities is greater than the tax basis of liabilities.

c.

the book basis of assets is equal to the tax basis of assets.

d.

the book basis of liabilities is less than the tax basis of liabilities.

e.

the book basis of assets is zero and the company reports an accounting loss on its income statement.

A deferred tax liability is created when

Select one:

a.

the book basis of assets is greater than the tax basis of assets.

b.

the book basis of liabilities is greater than the tax basis of liabilities.

c.

the book basis of assets is equal to the tax basis of assets.

d.

the book basis of assets is less than the tax basis of liabilities.

e.

None of the above.