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Res sir/mam,
Can you briefly explain me deferred tax asset and liability recognition, and in what all cases temporary differences cannot be recognized as deferred tax liability and asset.Cannot set up DT for goodwill.
Cannot set up DT asset for losses unless future profits expected.
Other DT set up for all temporary differences. Remember that you need to know the accounting rules but not the tax ones.
Imagine a revaluation:
Dr PPE Cr OCI
To sort out the tax:
Dr OCI and therefore Cr DT liability.
Hope this helps to get you started
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