Disclosure of Tax Assumption

B

To be in compliance with the PPS, a firm's presentation of its investment performance must disclose the tax rate information.

The correct answer is B. tax rate.

When presenting financial results after taxes, it is important to disclose the tax rate assumption used in the calculations. This is because the tax rate can significantly impact the reported figures and provide additional context for interpreting the results.

The tax rate assumption refers to the rate at which taxes are applied to the income or profits of an entity. Different jurisdictions have different tax rates, and companies may also be subject to different tax rules and regulations based on their industry or specific circumstances.

By disclosing the tax rate assumption, the presentation of financial results becomes more transparent and allows users of the information to understand the impact of taxes on the reported figures. It also enables users to make meaningful comparisons between different companies or periods and assess the tax efficiency or liability of the entity.

In summary, when financial results are presented after taxes, it is necessary to disclose the tax rate assumption used to calculate the tax expense or provision. This ensures transparency and helps users understand the impact of taxes on the reported figures.