in IAS 12 - Income Taxes by
Our company is finalizing its first year's financial accounts. However we have a loss and there is no income tax. But there is a deferred tax amount coming from the deferred tax computation. My question is whether we should recognize the deferred tax arising under income tax although there is no income tax?

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by Level 2 Member (4.2k points)
Yes you should.

A deferred tax asset shall be recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised, unless the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that:

(a) is not a business combination; and

(b) at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss).

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