The significant judgments related to "deferred income taxes" are subject to estimates of future profitable operations against which the deferred asset might be utilized.

Question

Quizplus · Accepted Answer

The statement is correct. Deferred income taxes are recognized for the future tax consequences of events that have already been recognized in the financial statements or tax returns. The future realization of a deferred tax asset is dependent on estimates of future taxable income or profitable operations against which the deferred asset can be utilized.

The Significant Judgments Related to "Deferred Income Taxes" Are Subject