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At 3 1 December 2 0 1 9 , the statement of financial position of M&M Ltd had a foreign currency loan of FC 1
At December the statement of financial position of M&M Ltd had a foreign currency loan of FC repayable in three years. During the year ended December the AUD equivalent of the foreign currency loan decreased from $ to $
Gains or losses on foreign currency loans are included in the determination of taxable profit in the period when the loan is settled. The tax rate is per cent.
Assume that for the purposes of statement of financial position presentation, deferred tax assets and deferred tax liabilities are netted off against each other.
At December in relation to the above liabilities, M&M Ltd would recognise which one of the following items in their statement of financial position?
Deferred tax liability of $
Deferred tax liability of $
Deferred tax asset of $
Deferred tax asset of $
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