I would like to draw your attention to this publication where ESMA sets out expectations regarding the recognition of deferred tax assets arising from the carry-forward of unused tax losses. It includes considerations on two areas of attention:
ESMA considers it relevant that issuers, auditors and audit committees take into consideration this public statement when preparing financial statements and, in particular, when assessing whether DTAs fulfil the recognition criteria set out in paragraphs 34 to 36 of IAS 12. ESMA, together with the national competent authorities, will continue to pay particular attention to this issue when performing examinations of financial statements.
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