clarify that an entity assesses whether to recognise the tax effect of a deductible temporary difference as a deferred tax asset in combination with other deferred tax assets. If tax law restricts the utilisation of tax losses so that an entity can only deduct tax losses against income of a specified type or specified types (eg if it can deduct capital losses only against capital gains), the entity must still assess a deferred tax asset in combination with other deferred tax assets, but only with deferred tax assets of the appropriate type.
EFRAG supports the core of the proposals in the ED. However, EFRAG has some concerns and wording suggestions that we recommend are taken into account when finalising the amendments to ensure that the welcomed clarifications are fully effective.