CERTYNEX IFRS ACADEMY

After three loss-making years, Bellirane wants to recognise an asset for its losses carried forward. Which elements can support the asset?

Sufficient taxable differences of the same authority and entity, reversing before the losses expire.

An ambitious, unsupported budget prepared by the new management.

Other convincing evidence that sufficient taxable profit will be available.

The financial strength of the parent, which would cover the losses.

The very size of the accumulated losses.