Conceptual F/W VS IAS 12

Hello Sir,

I hope you’re well.

I’m confused about the consistency between conceptual framework and IAS 12 recognition criteria. The kit says that, ‘Conceptual F/W states when probability of inflow/out flow is low disclose in notes however IAS 12 requires Deferred Tax to be recognized even if possibility is low’

While reading the study text I didn’t come across this inconsistency, as the revised conceptual framework doesn’t talk about the probability but the potential to produce economic benefits.

Kindly shed some light on this one.