Question

When a change in the tax law or rates occurs, the effect of the change on a deferred tax liability or asset must be recognized as an adjustment as of the _________.

1) Enactment date of the change
2) Beginning of the year of the change
3) Beginning of the first year presented
4) End of the year of the change

Answer 1

The effect of a change in tax law or rates on deferred tax liability or asset must be recognized as an adjustment on the enactment date of the change.

Step-by-step explanation:

The effect of a change in the tax law or rates on a deferred tax liability or asset must be recognized as an adjustment as of the enactment date of the change.