CERTYNEX IFRS ACADEMY

An entity has a history of recent losses. To what extent does it recognise a deferred tax asset on its losses carried forward?

To the extent of the profits forecast in its strategic plan.

For all the losses, provided the tax law does not limit their carry-forward period and a return to profit is envisaged.

Never, until it has returned to profit.

To the extent of sufficient taxable differences or other convincing evidence of sufficient taxable profit.