The two perspectives of identifying deferred tax balances are as follows:

1. Statement of Comprehensive Income (Income and Expenses) Perspective:
   • This perspective focuses on identifying differences arising in the period by comparing income and expenses recognized under IFRS to equivalent taxable or allowable amounts under tax legislation.
   • It recognizes the deferred tax expense or credit in the statement of comprehensive income for the period, with the opposing entry in the balance sheet as a deferred tax asset or liability.
2. Statement of Financial Position (Assets and Liabilities) Perspective:
   • This approach identifies deferred tax on a cumulative basis by comparing the carrying amount of assets and liabilities under IFRS to their carrying amounts according to tax rules.
   • It highlights the deferred tax liability or asset that should be recognized in the statement of financial position, with movement in this amount as a credit or expense in the comprehensive income.