Final answer:
False
Future deductible amounts do not directly correspond to Deferred Tax Assets (DTA) or Deferred Tax Liabilities (DTL); instead, DTAs are recognized based on probable future taxable profits to utilize such amounts.
Explanation:
The future deductible amount does not go with Deferred Tax Assets (DTA) or Deferred Tax Liabilities (DTL). DTA and DTL are associated with temporary differences between accounting and tax rules, leading to future taxable or deductible amounts. Future deductible amounts, such as tax losses carried forward, do not result in a DTA. Instead, they are recognized as a deferred tax asset only when it becomes probable that there will be future taxable profits against which the losses can be utilized.
In more detail, DTA and DTL arise due to timing differences in recognizing revenues and expenses for financial reporting purposes versus tax purposes. If an expense is recognized for financial reporting before it is deductible for tax purposes, it creates a DTL. Conversely, if an expense is deductible for tax purposes before being recognized for financial reporting, it leads to a DTA.
Future deductible amounts, on the other hand, are related to carryforwards of tax attributes like net operating losses. The recognition of a DTA is based on the expectation of generating sufficient taxable income to utilize the carried-forward losses.
In summary, while future deductible amounts are crucial in tax planning, they are not directly associated with DTA or DTL. DTA and DTL arise from differences in the timing of recognizing items for financial reporting and tax purposes, emphasizing the importance of understanding the specific nature of each item in the context of tax accounting.