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, comment whether the deferred tax asset and deferred tax liability meet the definition and recognition...

, comment whether the deferred tax asset and deferred tax liability meet the definition and recognition for an asset and a liability according to the Conceptual Framework for Financial Reporting.

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Answer #1

Yes, the deferred tax asset and deferred tax liability meet the definition and recognition for an asset and a liability according to the Conceptual Framework for Financial Reporting.

Deferred tax asset and Deferred tax liability represents an obligation where a probable outflow of cash will be required. If there is a Deferred Tax Liability, there will be an outflow of the cash in Future and If there is Deferred Tax Assets, there will be Inflow of Cash(Indirecly it will Reduced Cash Outfolw).

So, the deferred tax asset and deferred tax liability meet the definition and recognition for an asset and a liability according to the Conceptual Framework for Financial Reporting.

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