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What are the rules relating to recognition of deferred tax asset and liability?

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Question ajoutée par Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh
Date de publication: 2014/03/30
Kamran Anjum
par Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh

Deferred Tax Liability is recongnised as and when it arrives i.e. timing difference relating to tax base and asset base results in deferred tax liability.

However, for Deferred Tax Asset to be reconised, company needs to have available future profits against which it can be set off or claimed i.e. Future projections of profits agreed by the external auditors.

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