The criteria for recognising a deferred tax asset is:

Question

Quizplus · Accepted Answer

According to International Accounting Standards (IAS) 12, a deferred tax asset should be recognised to the extent, and only to the extent, that it is probable that future taxable amounts within the entity will be available against which the deductible temporary differences can be utilised. This means that there should be a higher degree of certainty that there will be sufficient taxable income in the future to offset the deductible temporary differences before the entity recognises a deferred tax asset. Therefore, option D is the correct answer.

The Criteria for Recognising a Deferred Tax Asset Is