Under IFRS an affirmative judgment approach is used for recognizing deferred tax assets up to the amount that is probable to be realized.

Question

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This statement is true under IFRS. Deferred tax assets are recognized up to the amount that is probable to be realized, using an affirmative judgment approach. This means that the entity must consider all available evidence, both positive and negative, to determine whether it is more likely than not that the deferred tax asset will be realized. If it is probable that the asset will be realized, it can be recognized on the balance sheet.

Under IFRS an Affirmative Judgment Approach Is Used for Recognizing