Question

How are deferred tax assets and deferred tax liabilities reported on the statement of financial position under IFRS?

Short answer

Individual deferred tax assets and liabilities must be categorized as current or noncurrent accounts for financial reporting purposes based on the corresponding assets and liabilities.

Step-by-step solution

Meaning of IFRS

International Financial Reporting Standards helps the business entities in accounting and financial reporting, by formulating set of rules and procedures.

Explaining the deferred tax assets and deferred tax liabilities

"A deferred tax obligation or asset is only deemed connected if reducing the asset or liability would temporarily change to reversal or turnaround."

"A deferred tax obligation or asset and deferred tax assets connected to carryforwards loss are not considered related liabilities or assets and must be categorized based on the predicted reversal date of the temporary difference