MCQ on Ind AS 12

 

The objective of Ind AS 12 is to prescribe the accounting treatment for

 

a)      Income taxes

b)      Taxes

c)      Indirect Taxes

d)      None of the above

 

 

Ind AS 12 requires an entity to account for the tax consequences of transactions and other events in the same way that it accounts for the transactions and other events themselves.

 

a)      True

b)      False

 

Ind AS 12 deals with the recognition of deferred tax assets arising from unused tax losses or unused tax credits

 

a)      True

b)      False

 

For the purposes of Ind AS 12, income taxes includes

 

a)      All domestic and foreign taxes which are based on taxable profits.

b)      Sales tax

c)      Entry Tax

d)      All of the above

 

For the purposes of Ind AS 12, income taxes includes

 

a)      All domestic and foreign taxes which are based on taxable profits.

b)      Withholding taxes, which are payable by a subsidiary, associate or joint arrangement on distributions to the reporting entity.

c)      All of the above

d)      None of the above

 

Tax expense (tax income) is the aggregate amount included in the determination of profit or loss for the period in respect of:

 

a)      Current tax

b)      Deferred tax

c)      Both a and b

d)      Only a

 

 

 

The amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period.

 

a)      Income tax

b)     Current tax

c)      Deferred tax

d)      None of the above

 

 

The amounts of income taxes payable in future periods in respect of taxable temporary differences.

 

a)      Deferred tax liabilities

b)      Deferred tax asset

c)      Current tax

d)      None of the above

 

Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of:

a)      Deductible temporary differences;

b)      Carry forward of unused tax losses

c)      Carry forward of unused tax credits.

d)     All of the above

 

 

The differences between the carrying amount of an asset or liability in the balance sheet and its tax base are known as

 

a)      Temporary differences

b)      Timing differences

c)      Permanent differences

d)      None of the above

 

 

The carrying amount an asset is Rs 100. The tax base amount is Rs 50. The difference of Rs 50 is known as:

 

a)      Temporary difference

b)      Timing difference

c)      Permanent difference

d)      None of the above

 

 

 

 

The carrying amount an asset is Rs 100. The tax base amount is Rs 60. Calculate the temporary

difference.

 

a)      100

b)      160

c)      60

d)     40

 

Temporary differences that will result in taxable amounts in determining taxable profit (tax loss) of future periods when the carrying amount of the asset or liability is recovered or settled are known as:

 

a)      Taxable temporary differences

b)      Deductible temporary differences

c)      Taxable timing differences

d)      None of the above

 

Temporary differences that will result in amounts that are deductible in determining taxable profit (tax loss) of future periods when the carrying amount of the asset or liability is recovered or settled are known as:

 

a)      Taxable temporary differences

b)     Deductible temporary differences

c)      Deductible timing differences

d)      None of the above

 

The tax base of an asset or liability is the amount attributed to that asset or liability for tax purposes.

a)      True

b)      False

 

 

As per Ind AS 12, Income Taxes, tax expense (tax income) comprises:

 

a)      Current tax expense

b)      Current tax income

c)      Deferred tax expense

d)      Deferred tax income

e)      All of the above