"A deferred tax asset is recognized to the extent that it is probable that there will be a taxable profit against which a deductible temporary difference can be used unless it arises from the initial recognition of an asset or liability that is not from a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.
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Deferred tax assets must be re-assessed every year to determine whether it is still probable that the asset will be recovered.
1.Under IAS, It is deemed probable that taxable profit will be available against which a deductible temporary difference can be utilized when there are sufficient taxable temporary differences relating to the same taxation authority and the same taxable entity which are expected to reverse:
(a) in the same period as the expected reversal of the deductible temporary difference; or
(b) in periods into which a tax loss arising from the deferred tax asset can be carried back or forward.
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"Does your company recognize deferred tax assets only when it is probable that taxable profits will be available against which the deductible temporary differences can be utilized?
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