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A deferred tax asset should never be recognized in relation to unused tax losses carried forward for deduction against future taxable profits, is this true or false?

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Question added by Deleted user
Date Posted: 2013/08/28
Jijumon James
by Jijumon James , SENIOR ACCOUNTANT , BADR AL SAMAA HOSPITAL

Deferred Tax asset is recognized only on temporary timing difference between  Taxable income under income tax act and Companies Income under books of accounts. If income tax Profit is higher Deferred tax asset should be created and subsequently it is reversed when the income tax income is lower.

If the losses arises due to temporary timing differences Deferred tax asset should be created. unless it is ignore for DTA computation. 

Prince Ninan
by Prince Ninan , Audit Executive , Lewis & Pecker

Deffered tax asset should be recognised only if there is virtual certainity regarding future profitability  

Deleted user
by Deleted user

It should be recognized if future profits are certain.

Deleted user
by Deleted user

False.
Deffered tax asset should only be recognized if future profits are certain.

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