Deferred tax assets arise when taxable income exceeds accounting profit. This occurs because the company has paid more in taxes (based on taxable income) than the tax expense reported in the financial statements (based on accounting profit). The difference is expected to be recovered in future periods, resulting in a deferred tax asset.

• Option B is incorrect because deferred tax assets arise when the tax base of an asset exceeds its carrying amount, not the other way around.
• Option C is incorrect because deferred tax assets arise when taxes payable (based on taxable income) exceed the tax expense (based on accounting profit), not the reverse.