There is no recognition of a deferred tax item in respect to Goodwill because it is a residual amount and the recognition of a deferred tax item would:
A) decrease the carrying amount of Goodwill;
B) increase the carrying amount of Goodwill;
C) decrease the profit on consolidation;
D) increase the profit on consolidation.

Question

Quizplus · Accepted Answer

The Answer of There is no recognition of a deferred tax item in respect to Goodwill because it is a residual amount and the recognition of a deferred tax item would:
A) decrease the carrying amount of Goodwill;
B) increase the carrying amount of Goodwill;
C) decrease the profit on consolidation;
D) increase the profit on consolidation.

There Is No Recognition of a Deferred Tax Item in Respect