Tax Losses, page-2

The two tests you refer to relate to sale of business & whether the new owner of the business can utilise these losses in the event of a full acquisition. Continuity of ownership is irrelevant in a listed company. However of concern & which I have raised in a previous post is the value of the tax asset being shown on the balance sheet each year.? The deferred tax asset is seriously of questionable value as it is requires future assessable income (taxable profit) to be generated to allow its utilisation . How the auditors have allowed this asset to remain on the balance sheet is a mystery to me. They waive this away by saying they rely on company forecast & modelling. These tax assets should have been writttrn off years ago IMO.