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  • Service: Audit, IFRS
  • Date: 8/21/2014

Deferred taxes – one step closer to clarity  

In response to a question that arose during the financial crisis – whether a deferred tax asset is recognised on unrealised losses on debt instruments – the IASB has issued proposed amendments to IAS 12 Income Taxes. The proposals feature detailed examples, showing that the answer to the question is 'yes', if certain conditions are met.
The amendments also attempt to address the much broader issue of how to determine future taxable profit for the asset recognition test. The wider implications of the proposals will therefore need to be assessed as part of the response to the IASB. Comments are due to the IASB by 18 December 2014.

Deferred tax assets on unrealised losses (2014/15)

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This In the Headlines looks at proposals issued by the IASB that seek to address the fundamental question of what future taxable profit is.

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