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<strong>Deferred tax assets 
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<p> 
Deferred tax assets are just recognized to the degree that future taxable profits may be available against which idle tax losses can be utilized. Businesses must evaluate the possibility of future taxable profits being available to utilize these unused tax losses. Where the covid-19 outbreak has endangered the future earnings of entities, management might need to revisit their valuation of deferred tax asset recognition to make sure it remains appropriate. 
Disclosure of evidence indicating the recognition of a deferred tax asset is also to be considered, as necessitated in AASB 112 Income Taxes.
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<li> 
<strong>Final Thoughts: Anticipate and resolve problems ahead 
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<p>
The Financial Reporting Council has guided the auditors regarding the issues they may encounter with the Coronavirus pandemic. Accountants and auditors, involved in the preparation of financial statements at the time, or later in 2020, must prudently consider the impacts that coronavirus has on the financial statements, as well as additional disclosure requirements. 
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