CERTYNEX IFRS ACADEMY

Ambrelle had not recognised an asset for its tax losses. This year, it signed profitable contracts that make probable taxable profit covering part of these losses. What does it do at the reporting date?

It recognises an asset to the extent that future taxable profit has become probable.

It recognises all the losses, since the situation is improving.

It restates prior years retrospectively.

Nothing: an asset not recognised initially can no longer be recognised.