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Basic Question 1 of 3
Intraperiod income tax allocation arises because ______
B. certain revenues and expenses appear in the financial statements but are excluded from taxable income.
C. items included in the determination of taxable income may be presented in different sections of the financial statements.
D. certain revenues and expenses appear in the financial statements either before or after they are included in taxable income.
A. income taxes must be allocated between current and future periods.
B. certain revenues and expenses appear in the financial statements but are excluded from taxable income.
C. items included in the determination of taxable income may be presented in different sections of the financial statements.
D. certain revenues and expenses appear in the financial statements either before or after they are included in taxable income.
User Contributed Comments 5
| User | Comment |
|---|---|
| kalps | Intraperiod tax allocation ----> allocating taxes between different lines on the income sttaement. |
| achu | Choice B- Because certain revenues and expenses appear in the financial statements but are excluded from taxable income- is more suitable to describe DTA's and DTL's. |
| johntan1979 | How does this differ from interperiod tax allocation? |
| Seancfa1 | Intra is inside/within the same entity - eg: intranet or intra-comany transfer. Inter is between/among - eg: internet, international, interpreter (someone who translates BETWEEN languages). |
| Seancfa1 | Therefore, intra in this sense applies to within 1 period. Inter applies between periods (multiple periods). |
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Learning Outcome Statements
analyze disclosures relating to deferred tax items and the effective tax rate reconciliation and explain how information included in these disclosures affects a company's financial statements and financial ratios
CFA® 2024 Level I Curriculum, Volume 3, Module 9.