Recognising Deferred Tax Assets and Deferred Tax Liabilities as Per

Recognising deferred tax assets and deferred tax liabilities as per AASB 112 creates some conflict with the definition of assets and liabilities in the AASB Conceptual Framework.Key issues in this regard are:

A) It is questionable whether or not the company controls the benefits from the deferred tax asset, and there is not a present obligation to transfer the funds represented in the deferred tax liability to the government.
B) The company really has no claim against the government for the amount of the deferred tax asset and it is not probable that the company will have to pay the deferred tax liability.
C) Setting off the deferred tax asset and deferred tax liability does not meet the requirements of the AASB Conceptual Framework and there is a contingent element involved in the recognition of the deferred tax asset.
D) The AASB Conceptual Framework does not permit the recognition of the rights to future revenues implicit in assets to trigger obligations to future expenses implicit in liabilities and the extent to which a deferred tax liability is recognised should not depend on management's intention to sell a revalued asset.