Question

What does Michael need to include in the disclosure for Good Corp.'s income tax expense under IFRS?

A. Nature and amount of each significant item of deferred tax expense or income.
B. Tax expense related to adjustments for prior periods.
C. Components of tax expense from continuing operations.
D. Deferred tax assets and liabilities recognized and their measurement basis.

Answer 1

Michael should include disclosures about significant deferred tax items, adjustments related to prior periods, and the components of current tax expense from continuing operations under IFRS for Good Corp.'s income tax expense.

Step-by-step explanation:

Michael must include several elements in the disclosure for Good Corp.'s income tax expense under International Financial Reporting Standards (IFRS). Firstly, the nature and amount of each significant item of deferred tax expense or income must be reported to provide clarity on temporary differences and their effects on future tax periods. Secondly, the disclosure should include any tax expense related to adjustments for prior periods; this is crucial as it shows the organization's compliance and accuracy in tax reporting over time. Lastly, there should be a comprehensive breakdown of the components of tax expense from continuing operations, offering insight into different facets of tax costs. Additionally, although not specified in the student's selection, the disclosure might also encompass deferred tax assets and liabilities recognized and their measurement basis, as these pertain to the organization's future tax potential and basis for recognition and measurement within the financial statements.