Deferred tax arises from:
ACash flows
BTemporary differences between accounting and tax basesCORRECT
CPermanent differences
DForeign exchange
ACCAFinancial Reporting
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
IAS 12: deferred tax arises from temporary differences and is recognised at applicable rates.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →
Practice more Financial Reporting questions
ACCA Financial Reporting has thousands more questions like this — with Worked answers on every one.