SMP 0.88% $1.15 smartpay holdings limited

Ann: Trading Update, page-39

  1. 3,565 Posts.
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    Correct, they're still there regardless of whether an auditor chooses to recognise them.

    You'll find that there's probably a dialogue between the auditor and management about what proportion of those losses could be used to offset future tax, and that will be recognised in the relevant period.

    A much smaller company I own (ANO) went through this. They recognised a tax asset once they were profitable (FY19 AR I believe) and the auditors agreed to sign it off.


    What matters is not the value of the tax asset, but whether one is confident they can be used to offset a future tax liability (that is, they're profitable). I expect that to be the case here.
 
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