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What is the purpose of deferred tax assets and liabilities What do

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What is the purpose of deferred tax assets and liabilities?
What do they represent and how do they affect tax
expense. Do you think recording deferred tax
assets/liabilities helps the readers of the financial
statements better understand a companys tax position?
Why or why not?
Solution
Deferred Tax Assets and Deferred Tax Liabilities arise due
to the timing/Temporary differences.Concept of Deferred
Tax Asset and Liabilities is prescirbed by IAS Income
TAxes.
Temporary differences are differences between the
carrying amount of an asset or liability in the statement of
financial position and its tax base.purpose of deferred tax
assets and liabilities is better accounting treatment of
taxes and better presentation of Financial Statements.
A deferred tax asset shall be recognized for all deductible
temporary differences to the extent that it is probable that
taxable profitwill be available against which the deductible
temporary difference can be utilized.In simple words if we
have paid tax more than the tax payable as per accounting

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What is the purpose of deferred tax assets and liabilities? What do they represent and how do they affect tax expense. Do you think recording deferred tax assets/liabilities helps the readers of the financial statements better understand a company’s tax position? Why or why not? Solution Deferred Tax Assets and Deferred Tax Liabilities arise due to the timing/Temporary differences.Concept of Deferred Tax Asset and Liabilities is prescirbed by IAS Income TAxes. Temporary differences are differences between the carrying amount of an asset or liability in the statement of financial position a ...
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