Recognition of tax benefits in the loss year due to a loss carryforward requires

Name: Recognition of tax benefits in the loss year due to a loss carryforward requires
Brand: Quizplus
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Question

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Recognition of tax benefits in the loss year due to a loss carryforward requires the establishment of a deferred tax asset. This is because the loss carryforward creates a future tax benefit, which is recognized as an asset on the balance sheet. The deferred tax asset is then offset against future taxable income when it is realized.

Recognition of Tax Benefits in the Loss Year Due to a Loss