Which of the following correctly describes the tax rates used under U.S. GAAP and IFRS for deferred taxes?

Multiple Choice

• Both GAAP and IFRS use only enacted tax rates.

• Both GAAP and IFRS use substantively enacted tax rates.

• GAAP uses enacted or substantively enacted rates while IFRS uses only enacted tax rates.

• GAAP uses enacted tax rates while IFRS uses enacted or substantively enacted tax rates.