Netting of deferred income tax assets and liabilities is always forbidden under IFRS and ASPE.

Question

Quizplus · Accepted Answer

Under IFRS, netting of deferred income tax assets and liabilities is allowed if certain conditions are met, such as when they relate to income taxes levied by the same taxation authority and the entity has a legally enforceable right to set off current tax assets against current tax liabilities. ASPE (Accounting Standards for Private Enterprises in Canada) also has provisions for netting but may have different criteria for when it is permissible.

Netting of Deferred Income Tax Assets and Liabilities Is Always