Under IFRS Deferred Tax Assets Are Recognized Only to the Extent

question 37

True/False

Under IFRS deferred tax assets are recognized only to the extent it is deemed probable that they will be realized.

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, indicating the cost of borrowing or the return on savings.

Present Value

The current financial value of a future financial sum or sequences of payments, assessed with a predefined rate of earnings.

Interest Rate

The cost of borrowing money or the return on savings, typically expressed as a percentage of the principal amount per year.

Discounting

The process of determining the present value of future cash flows by applying a discount rate to reflect time value of money and risk.