On consolidation, a group can only offset current tax assets against current tax liabilities when the group: a. has adopted tax consolidation. b. has no partly owned subsidiaries. c. operated wholly within Australia. d. all of the above.

A consolidation adjustment will have a tax effect if: a. it adjusts the carrying amount of an asset. b. it adjusts the carrying amount of a liability. c. it recognises assets and liabilities not recorded in accounting records of group companies. d. all of the above.

On consolidation, adjustment to deferred tax assets and liabilities is required for: a. unrealised intragroup profits b. unrealised intragroup losses c. fair value adjustments d. all of the above

If the carrying amount of an identifiable non-current asset of a subsidiary in a business combination is increased to fair value, on consolidation the group will record: a. A current tax liability. b. A deferred tax asset. c. A gain on bargain purchase. d. None of the above.

If a contingent liability of a subsidiary is recognised in a business combination, on consolidation the groupwill record:a) a deferred tax liability.b) a deferred tax asset.c) a reduction in goodwill.d) none of the above

Which of the following accounts CANNOT be altered by a consolidation adjusting entry? a. Accounts receivable b. Revenue c. Income tax payable d. Deferred tax asset