| IFRS |
ASPE |
| Terminology: accounting and taxable profit, deferred taxes, tax base, and tax income. |
Terminology: accounting and taxable income, future income taxes, tax basis, and tax benefit. |
| Deferred tax asset is recognized when the future realization is considered probable. No valuation allowance is used. |
Future tax asset can be recognized for the full amount of the effect of the temporary difference, with an offsetting valuation allowance used to reflect the possibility that future realization is not “more likely than not.” |
| Deferred tax balances are classified as non-current. |
Classification of future tax amounts will depend on the classification of the underlying asset or liability. If there is no underlying asset or liability, classification will be determined by the expected reversal of the temporary differences. |
| More disclosures. |
Fewer disclosures. |
| Companies can only apply the deferred tax approach. |
Companies can choose between the taxes payable method and the future income taxes method. The future income taxes method is similar to the deferred tax approach, although some of the terminology is slightly different. |
