Deferred Tax in case of loss

This discussion clarifies the compulsory creation of deferred tax assets for companies experiencing losses, even when accounting and taxable losses align. It explains that deferred tax assets are recognised when the carrying value exceeds the tax base, and that depreciation differences are not the sole factor. The thread also touches upon how prior year losses can be offset against current trading income, and that deferred tax accounting isn't typically required for carried-forward losses, highlighting that accounting and tax profits rarely match exactly.