Banking
Deferred Tax Asset — Collective Loan Provisions
Recognizing a deferred tax asset for Stage 1/2 ECL provisions not yet tax-deductible.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Tax Asset (Provisions) | Asset (+) | 1,200,000.00 | - |
| Deferred Tax Benefit (Income) | Revenue (+) | - | 1,200,000.00 |
💡 Accountant's Note
Stage 1 and 2 collective provisions are often only tax-deductible when the loan is specifically impaired. This creates a deductible temporary difference and a DTA — recognizable when future taxable profit is probable.
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