In jurisdictions where the impairment of goodwill is not tax deductible, IAS 12 Income Taxes:
A) does not permit the application of deferred tax accounting to goodwill;
B) allows the recognition of a deferred tax item in relation to goodwill;
C) requires that any deferred tax items in relation to goodwill be recognised directly in equity;
D) requires that any deferred tax items for goodwill be capitalised in the carrying amount of goodwill.

Question

Quizplus · Accepted Answer

IAS 12 does not permit the recognition of deferred tax liabilities or assets on goodwill if the goodwill is not tax-deductible.

In Jurisdictions Where the Impairment of Goodwill Is Not Tax