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      Question

      If tax rate changes, which of these statements is true

      for deferred tax?
      A Deferred tax balances are unaffected by tax rate changes Correct Answer Incorrect Answer
      B Deferred tax balances should be remeasured using enacted/new tax rate and effect recognised in P&L or OCI as applicable Correct Answer Incorrect Answer
      C Deferred tax no longer recognised Correct Answer Incorrect Answer
      D Deferred tax always increases assets Correct Answer Incorrect Answer
      E Deferred tax is eliminated Correct Answer Incorrect Answer

      Solution

      On tax rate changes, DT assets/liabilities are remeasured.

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