ESMA sets out expectations regarding the application of IAS12

ESMA has issued a statement with respect to the application of the requisites relating to the recognition, measurement and disclosure of deferred tax assets arising from unused tax losses in IFRS financial statements.

The European Securities and Markets Authority has issued the public statement to promote the consistent application of IFRS across the EU Member States.

ESMA referenced the following topics in its public statements:

  1. The assessment of probability that future taxable profits will be available as assessed through paragraph 36 of IAS12;
  2. The assessment on whether the expectations of future taxable profits have convincing supporting evidence as per paragraph 35 of IAS12; and
  3. Disclosures.

ESMA Public Statement can be fond at the following link: )