Exposure Draft: Recognition of DTA for Unrealised Losses (IFRS)


The IASB has proposed amendments to IAS 12 on deferred tax asset recognition for debt instruments measured at fair value.

The exposure draft also suggests a new illustrative example. The comment period ends on 18 December 2014.

The exposure draft proposes to clarify the following:

  •  unrealised losses on debt instruments measured at fair value and with a tax base at cost give rise to a deductible temporary difference irrespective of whether the holder expects to recover the carrying amount by sale or use;
  • the extent to which the estimate of future taxable profits considers recovery of assets for more than their carrying amount;
  •  estimates of future taxable profits should exclude tax deductions resulting from the reversal of deductible temporary differences; and
  •  an entity should assess recognition of a deferred tax asset in combination with other deferred tax assets of the same type based on how the tax law restricts the utilisation of tax losses.

Feel free to contact us if you want to assess the impact of this exposure draft on your organisation.

The exposure draft can be consulted on the IFRS website by clicking here.