Where an associate makes profits subsequent to the investor's acquisition of the equity investment,a deferred tax liability will be required to be recognised.

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Chase Orsak · Accepted Answer

Final Answer : True, Explanation :  This is because the investor's share of the profit from the associate will be included in the investor's taxable income, and therefore a deferred tax liability will be created for the future tax impact.

Where an associate makes profits subsequent to the investor's acquisition of the equity investment,a deferred tax liability will be required to be recognised.

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