Q10. Markham Inc. is a profitable non-U.S. firm that uses the LIFO inventory cost-flow assumption for tax purposes and the FIFO cost-flow assumption for financial statement purposes. When prices are declining, which of the following statements is most accurate regarding the deferred tax implications relating solely to the choice of inventory cost-flow assumptions? A) If a profitable firm uses LIFO for tax purposes and FIFO for financial statement reporting, a deferred tax liability will result. B) If a profitable firm uses LIFO for tax purposes and FIFO for financial statement reporting, a deferred tax asset will result. C) Neither IFRS nor U.S. GAAP allows firms to use different inventory cost-flow assumptions for tax purposes and financial statement purposes.
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发表于 2009-1-19 11:07
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