The PwC global network of firms submitted comments on the IASB's exposure draft, Recognition of Deferred Tax Assets for Unrealized Losses, which contains proposed amendments to IAS 12, Income Taxes. We agree with the IASB’s conclusions about the recognition of deferred tax assets for unrealized losses on investments in debt instruments, which are consistent with the existing principles in IAS 12. We are concerned, however, that the proposed amendments are too detailed and introduce new complexity to a straightforward issue. In our letter, we provide detailed suggestions, including answers to the specific questions in the exposure draft and some suggestions for simplifying the illustrative computation.
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