A company which prepares its financial statements
A company which prepares its financial statements in accordance with IFRS incurred and capitalized €2 million of development costs during the year. These costs were fully deductible immediately for tax purposes, but the company is depreciating them over two years for financial reporting purposes. The company has a long history of profitability which is expected to continue. Which is the most appropriate way for an analyst to incorporate the differential tax treatment in his analysis? He should include it in:
A. liabilities when calculating the company’s current ratio.
B. equity when calculating the company’s return on equity ratio.
C. liabilities when calculating the company’s debt-to-equity ratio.
参考解答
462***986
2024-10-24 17:41:11
Ans:C.
The different treatment for tax purposes and financial reporting purposes is a temporary difference and would create a deferred tax liability. Deferred tax liabilities should be classified as debt if they are expected to reverse with subsequent tax payments. The long history of profitability implies the company will likely be paying taxes in the following years and hence an analyst could reasonably expect the temporary difference to reverse. Under IFRS all deferred tax liabilities are non-current and therefore do not affect the current ratio.
相似问题
下列关于商业银行业务的表述 错误的是( )。A.商业银行不得拖延 拒绝支付定期存款人本金和利息B.单
下列关于商业银行业务的表述，错误的是( )。A 商业银行不得拖延、拒绝支付定期存款人本金和利息B 单位名称中使用“银行”字样须经国务院银行业监督管理
编制总指数的两种形式是( )。A. 个体指数和综合指数B. 平均数指数和平均指标指数C. 综合指数和
编制总指数的两种形式是( )。A 个体指数和综合指数B 平均数指数和平均指标指数C 综合指数和平均数指数D 数量指标指数和质量指标指数
A company records $42 000 more in tax depreciation
A company records $42,000 more in tax depreciation than in book depreciation Assuming a 35% tax rate will apply in the fu
《商业银行法》规定 商业银行流动性负债余额与流动性资产余额的比例( )。A.不得低于4倍B.不得高于
《商业银行法》规定，商业银行流动性负债余额与流动性资产余额的比例( )。A 不得低于4倍B 不得高于4倍C 不得低于25%D 不得高于25%
以下财务指标中 反映企业偿债能力的指标是( )。A.总资产报酬率B.净资产收益率C.流动比率D.销售
以下财务指标中，反映企业偿债能力的指标是( )。A 总资产报酬率B 净资产收益率C 流动比率D 销售净利率
