COVID-19: Getting ready for reporting season – consideration of DTA recoverability

Tim Lynch, Emma Pratt & Michael Baartz discuss how the COVID-19 financial impacts to a business should be leveraged and used in the organisation’s DTA recoverability model.

As businesses continue to feel the impact of COVID-19, and with 30 June reporting season around the corner, it is important to not lose sight of the recoverability of Deferred Tax Assets (DTAs) and the work that should be undertaken in this regard.Management needs to consider the effect of any changes to their forecasting and the probability of future taxable profits.Australian Accounting Standards Board (AASB) 12 – a refresherUnder AASB 12 Income Taxes, a DTA shall be recognised for deductib...

Sign in below or register now to read the full article

Authors: Tim Lynch, Emma Pratt,

Published Date: 30 April 2020