The Criterion for Recognising a Deferred Tax Asset Is That

question 52

Multiple Choice

The criterion for recognising a deferred tax asset is that:

• A) it should be fully recognised if it is probable that future taxable amounts within the entity will be available against which the deductible temporary differences can be utilised.
• B) it should be recognised if it is possible that future taxable amounts within the entity will be available against which the deductible temporary differences can be utilised.
• C) it should be recognised to the extent, and only to the extent, that it is possible that future taxable amounts within the entity will be available against which the deductible temporary differences can be utilised.
• D) it 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.

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Definitions:

FAB Statement

A FAB Statement highlights the Features, Advantages, and Benefits of a product or service, showcasing how it satisfies customer needs.

Customer Benefit Plan

A strategy designed to outline the advantages or improvements a customer will receive from a product or service.

Marketing Plan

A comprehensive document or blueprint that outlines a company's advertising and marketing efforts for the coming period.

FAB

An acronym for Features, Advantages, and Benefits, a sales strategy that focuses on explaining a product's characteristics and the positive outcomes of using it.