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Basic Question 12 of 13

Which of the following would result in expected reversals of timing differences not occurring?

I. A rise in price levels
II. A firm that has been growing
III. Changes in accounting methods
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User Contributed Comments 3

User Comment
kalps a) Rise in price leves b) A firm that has been growing c) changes in accounting methods Can cause a deferred tax asset or liability to grow and not reverse. Larger differences are put into the account then taken out, and account thus continues to grow.
Masterkang Ay Ay Ay Kalps can summarize!
poomie83 I wouldnt call that a summary
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Andrea Schildbach

Learning Outcome Statements

explain how deferred tax liabilities and assets are created and the factors that determine how a company's deferred tax liabilities and assets should be treated for the purposes of financial analysis

CFA® 2024 Level I Curriculum, Volume 3, Module 9.