Hello sir, i woukd to like to ask why to recognise deferred tax asset, must have deferred tax liability that i can use? Could you please explain to me clearly.
Question 2
Why deferred tax liability recognised cannot exceed the deferred tax asset recognised?
Ask the Tutor ACCA SBR
ias 12 income taxes
5y ago#1LOSSES ONLY - ONLY IF ONE OF THE TDs IS LOSSES
If, having offset DT liability and DT asset, you end up with a net DT asset, you can ONLY recognise the DT asset to the extent that profits will be expected in the future.
There are no other rules!
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