Final answer:
The tax rate that should be used to measure deferred tax assets and liabilities under IFRS and US GAAP is the enacted tax rate. This rate is used to calculate the deferred tax assets and liabilities based on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases.
Step-by-step explanation:
The tax rate that should be used to measure deferred tax assets and liabilities under IFRS and US GAAP is the enacted tax rate. This is the tax rate that has been legally enacted or substantively enacted by the date of the financial statements. It is used to calculate the deferred tax assets and liabilities based on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases.
For example, if a company has an asset that is valued at $100 for financial reporting purposes but has a tax base of $80, there is a temporary difference of $20. This temporary difference will result in a taxable amount of $20 in the future when the asset is recovered or settled. The deferred tax liability is calculated by multiplying the temporary difference by the enacted tax rate.
It is important to note that the enacted tax rate is used to measure deferred tax assets and liabilities because it represents the tax rate that will actually be applied when the temporary differences reverse in the future.