Amendment #4 Page 651 of 868 cetlniet Deferred tax assets and liabilities are recognized for the Inure tax consequences attnixtehe to differences between the Irenoel statement carrying amounts of emend assets and abates and their respective tax bases arid operabng loss carry forwards arid tax credit carry forwards Deferred income taxes arise pnmanty because of afferences n the bases of assets or Mtn tes between financial statement accounting and tax accountrg which are known as temporary deererces, We record O. tax effect of these temporary dfferences as deferred tag assets (genera, / terns that can be used as a tax deduct= or credit ri future periods) and deferred tax lobelia (generally items for which we receive a tax deducton but have not yet been recorded in the combined statement of Income) Deferred tax assets and bedews we measured using enacted tax rates expected to ape?, to taxable income in the years n which those temporary dfferences are expecte] to be recovered or settled We ignore future ongnating temporary differences and schedule ending temporary differences to reverse on a fre-n-first-out basis wren determning the tar race expected to apply for purposesof measuring deferred taxes. The effect on deferred tax assets and ledlitres c4 a charge n tax rate is recognized in operations in the period that includes the enactment date We regularly review Ott deferred lax assets for reazability, taking irto consideraton all available evidence. both man and negative, including hist0nCel pre-tax and taxable income. projected future pre-tax and taxable income and the expected timing of the revers's of existing temporary differences In waving at these adgnents the weight given to the potent el °led of all implore and negate evidence *cornmensurate wth the extent towhich it can be otectreely verified Valuation allowances are eatablehed when management determines that it is more *rely than not that some portion or all of the deferred tax asset will not b