Recognizing a deferred tax asset for most deductible temporary differences and carryforward of unused tax losses is

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Recognizing a deferred tax asset for most deductible temporary differences and carryforward of unused tax losses is used under both IFRS and ASPE accounting standards, but it is only recognized to the extent that it is probable that the deferred tax asset will be realized. This means that there must be sufficient taxable income in the future against which the deferred tax asset can be offset. The recognition of deferred tax assets is important because it can have a significant impact on a company's reported financial position and results of operations.

Recognizing a Deferred Tax Asset for Most Deductible Temporary Differences