Using the fundamental principle from IAS 12 income Tax, explain whether a deferred tax asset or a deferred tax liability should be recognized in relating to the following scenarios;

1. Development Costs:

Development costs of $1000 that are recognized 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 cash was paid).

2. Trade Receivable:

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