Consider or do not consider deferred tax asset/liability in calculating changes in working capital for VIU calculation

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Mau
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Joined: 01 Feb 2023, 15:27

Consider or do not consider deferred tax asset/liability in calculating changes in working capital for VIU calculation

Post by Mau »

Greetings Marek and all.

I want to clarify if deferred tax asse/liability should be considered in determining changes in working capital while calculating free cash flow for VIU determination in order to test for impairment?

Thanks.
Mau
Posts: 11
Joined: 01 Feb 2023, 15:27

Re: Consider or do not consider deferred tax asset/liability in calculating changes in working capital for VIU calculati

Post by Mau »

Thank you Marek.

For instance I see deferred tax asset classified under current assets on the SoFP. I think (but not sure) it should form part of working capital definition.
cheers.
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Marek Muc
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Re: Consider or do not consider deferred tax asset/liability in calculating changes in working capital for VIU calculati

Post by Marek Muc »

Interesting, why a current asset despite the explicit requirement in IAS 1.56?
When an entity presents current and non-current assets, and current and non-current liabilities, as separate classifications in its statement of financial position, it shall not classify deferred tax assets (liabilities) as current assets (liabilities).
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