Question 8 Flint Corporation has historically followed ASPE, but is considering a change to IFRS. It...

Answer:

NON CURRENT LIABILITIES:

Deferred Tax Liability = $ 47,400

Explanation:

Deferred tax liabilities have to be recognised for taxable temporary differences and deferred tax assets have to be recognised for deductible temporary differences, unused tax losses and unused tax credits.

An entity shall offset deferred tax assets and deferred tax liability if and only if:

• entity has legally enforceable right to set off current tax assets with current tax liability
• Deferred tax assets and deferred tax liabilities relate to income taxes levied by same taxation authority on either: 1) same taxable entity or 2) different taxable entities which intend either to settle current tax liabilities and assets on net basis or to realise the assets and settle the liabilities simultaneously in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Thank you.