Which of the following factors is an analyst least likely to consider when determining if a company’s deferred tax liabilities should be treated as a liability or equity? A. The growth rate of the firm B. The average discount rate of liabilities C. The expectation that temporary differences will reverse D. The use of acceleted depresiation methods for tax purposes. What is the correct answer?
B (I think)
what is real answer?
Check on factors affecting deferred taxes, page 436, CFAI volume 3: these are future tax rates and tax law (conditon mentioned at C), changes in accounting methods (condition mentoned at D), the firm’s growth rate (conditon mentioned at A), nonrecurring items and equity adjustments. Answer must be B
answer is B according to the mock feedback