4. using the fundamental principle from IAS 12 income tax , explain whether a deferred tax asset or a deferred tax liability should be recognized in relation to the following scenario:

a) Development cost

Development cost of $1000 that are reorganized as an asset (i.e capitalized) and will be amortized to the statement of P/L and OCI. The costs were deducted in determining taxable profit when they were incurred (i.e when the cash was paid)

b) Trade Receivables

Carrying amount of trade receivables is $150. The $150 is net of expected doubtful debts of $50. .