Deferred tax asset on unused losses

Hi there, I hope you’re well?

I’m currently struggling to get my head around the double entries which would occur to recognise deferred tax assets on unused losses in line with IAS 12. In my Kaplan Integrated Workbook (and other research on this forum / online), I’ve only been able to come across instances where it is not considered probable that the entity will generate sufficient future taxable profits for the deferred tax asset to be used against/utilised, therefore meaning recognition should not occur of a deferred tax asset, but I’ve never seen a scenario where it should be recognised.

My concern here is that in a long-form question in the exam I may come across a business who are considered to generate sufficient future taxable profits to utilise a deferred tax asset – what would the double entries be here please?

In my mind I’ve pictured it as being:

In the year of loss:

Dr deferred tax asset (equal to loss incurred * applicable tax rate)
Cr tax expense in SPL (positive entry in P/L to acknowledge that this will be offset in future periods)

In a year of taxable profit being generated:

Cr deferred tax asset
Dr tax expense

Unfortunately the above doesn’t seem logical to me though as it would increase the tax expense during the year of profit which defeats the purpose of having an unused loss which should reduce your tax expense for the period.

Please may I have your help with this?

Thanks.