Case study 12.4 Deferred tax balances and discounting A fellow student said, Deferred tax liabilities and assets should be measured using a discounted cash flow model. The deferred tax is paid or refunded in the future that could be years away so the time value of money should be taken into account.

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Refer to AASB 112/IAS 12 and comment on your fellow students argument. Identify other assets and liabilities where discounting is required in the measurement approach.