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Bus/Financial - Accounting / Pharma | | German term or phrase: vollständig wertberichtigt | Diese Verlustvorträge sind aufgrund der derzeit in Deutschland geltenden gesetzlichen Regelungen unbegrenzt vortragsfähig. Aufgrund der mangelnden Vorhersehbarkeit zukünftiger steuerlicher Gewinne wurden in Übereinstimmung mit IAS 12.34 die grundsätzlich bestehenden latenten Steueransprüche aus Verlustvorträgen und aktiven temporären Differenzen in Höhe von xx TEUR vollständig wertberichtigt.
I am not sure what is meant here as IAS 12.34 states:
A deferred tax asset should be recognised for an unused tax loss carryforward or unused tax credit if, and only if, it is considered probable that there will be sufficient future taxable profit against which the loss or credit carryforwards can be utilised. [IAS 12.34]
I am not an accountant - I have tried to research the term in this context on the internet but I am not sure...
Many thanks in advance! |
|  Diana ZehetnerKudoZ activityQuestions: 58 ( 6 open) ( 1 without valid answers) ( 7 closed without grading) Answers: 5
| | Local time: 23:17
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| | English translation:written off/written down in full | Explanation:
You could use either of these terms.
You need to read IAS 12.34 in conjunction with IAS 12.56, which requires the carrying amount of deferred tax assets to be reviewed at each reporting date. If it's unlikely that there will be sufficient taxable profit to allow the deferred tax asset to be utilised in part or in full, the carrying amount of the deferred tax asset must be reduced, i.e. the deferred tax asset is written down. In other words, you can't keep deferred tax assets on your books if you're not going to make sufficient profit in the future to allow you to recover the benefit of the deferred tax assets.
In your example, the reporting entity estimates that there will not be any taxable profit in future periods against which the deferred tax assets can be utilised, so it has reduced their carrying amount to zero, i.e. it has written them down in full/written them off. |
| Selected response from:
RobinB
Local time: 00:17
| Grading comment Selected automatically based on peer agreement.
4 KudoZ points were awarded for this answer |
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11 hrs confidence:  peer agreement (net): +3 written off/written down in full
Explanation:
You could use either of these terms.
You need to read IAS 12.34 in conjunction with IAS 12.56, which requires the carrying amount of deferred tax assets to be reviewed at each reporting date. If it's unlikely that there will be sufficient taxable profit to allow the deferred tax asset to be utilised in part or in full, the carrying amount of the deferred tax asset must be reduced, i.e. the deferred tax asset is written down. In other words, you can't keep deferred tax assets on your books if you're not going to make sufficient profit in the future to allow you to recover the benefit of the deferred tax assets.
In your example, the reporting entity estimates that there will not be any taxable profit in future periods against which the deferred tax assets can be utilised, so it has reduced their carrying amount to zero, i.e. it has written them down in full/written them off.
| RobinB
Local time: 00:17
Specializes in field
Native speaker of:  English
PRO pts in category: 837
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| | Grading comment | Selected automatically based on peer agreement. |
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The translation workplace 
