15 December 2014

Deloitte: Comment letter on proposed amendments regarding the recognition of deferred tax assets for unrealised losses

Deloitte has published its comment letter on the IASB´s ED/2014/3 'Recognition of Deferred Tax Assets for Unrealised Losses'.

The IASB's proposed amendments aim at clarifying the following aspects:

• Unrealised losses on debt instruments measured at fair value and measured at cost for tax purposes give rise to a deductible temporary difference regardless of whether the debt instrument's holder expects to recover the carrying amount of the debt instrument by sale or by use
• The carrying amount of an asset does not limit the estimation of probable future taxable profits
• Estimates for future taxable profits exclude tax deductions resulting from the reversal of deductible temporary differences
• An entity assesses a deferred tax asset in combination with other deferred tax assets. Where tax law restricts the utilisation of tax losses, an entity would assess a deferred tax asset in combination with other deferred tax assets of the same type

In general, Deloitte agrees with the proposed amendments; however, it suggests some enhancements to the wording to better clarify the proposals.

Press release

Full comment letter

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