Under IFRS deferred tax assets are recognized only to the extent it is deemed probable that they will be realized.

Question

Quizplus · Accepted Answer

Under IFRS, deferred tax assets are only recognized to the extent that it is probable that they will be realized. This means that the company must have sufficient future taxable income against which the asset can be utilized. If it is not likely that the asset will be fully utilized, it is not recognized on the balance sheet.

Under IFRS Deferred Tax Assets Are Recognized Only to the Extent