Page 104 - Finac1 Test 1 slides

INCOME TAXES

Deferred Tax Asset

• A deferred tax asset

• should be recognised for all deductible temporary differences
to the extent that it is probable that taxable profit will be
available against which deductible temporary difference can
be utilised unless the deferred tax asset arises from the

following:

• EXEMPTION – IAS 12.24 The initial recognition of an
asset/liability in a transaction that:

• is not a business combination; and

• at the time of the transaction, affects neither
accounting profit nor taxable profit/loss

• Note:

• A deferred tax asset is recognised only when it is probable that taxable
profits will be available against which the deferred tax asset can be
utilised

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