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    Question

    Which of the following statements about deferred tax

    assets (DTA) is true?
    A DTA always recognised irrespective of probability of future taxable profits Correct Answer Incorrect Answer
    B DTA recognised only when it is probable that taxable profit will be available against which deductible temporary differences can be utilised Correct Answer Incorrect Answer
    C DTA is same as deferred revenue Correct Answer Incorrect Answer
    D DTA is not affected by tax rate changes Correct Answer Incorrect Answer

    Solution

    A deferred tax asset is recognized for deductible temporary differences to the extent that it is probable that future taxable profit will be available against which the deductible temporary difference can be utilized.

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