TRUE OR FALSE PLEASE ANSWER IT CORRECTLY

1. A taxable temporary difference arises when accounting income is higher than taxable income because of future taxable amount.

2. Temporary differences are items of income and expenses which are included in both accounting income and taxable income but at different time periods.

3. The use of estimates is an essential part of the preparation of financial statements and does not undermine their reliability.

4.A deferred tax liability is the deferred tax consequence attributable to a future deductible amount and operating loss carryforward.

5. An accounting provision cannot be created in anticipation of a future event.

6. Where no reliable estimate can be made, no liability is recognized.

7. When an asset in the group is retired, no gain or loss is reported.

8. In fair value model for investment property, any changes in fair value are included in profit or loss.

9. A provision may be the equivalent of an estimated liability or a loss contingency that is accrued because it is both probable and measurable.

10. A contingent asset shall be recognized because this may result to recognition of income.

11. Temporary differences are items of revenue and expense which are included in either accounting income or taxable income but will never be included in the other.

12. Provision shall be recognized as a liability in the financial statements if the entity has a past obligation, legal or constructive, as a result of a past event.

13. Financial income is the net income for the period before deducting income tax expense.

14. A deferred tax asset arises when taxable income is higher than accounting income because of future deductible amount.

15. Depreciation ceases when the asset is derecognized.

16. A contingent liability is a possible obligation that arises from past event but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured reliably.

17. Provision shall be recognized for future operating losses.

18. Government grant shall be recognized as income on a systematic basis over the periods in which an entity recognizes as expenses the related costs for which the grant is intended to compensate.

19. An investment property shall be measured initially at its fair value.

20. Provision shall be recognized as a liability in the financial statements if is probable that an outflow of resources embodying economic benefits would be required to settle the obligation.