EXAMPLE-Additional disclosure to enhance fair presentation

EXAMPLE-Additional disclosure to enhance fair presentation
Issue
A fair presentation of an undertaking’s financial position may require, in rare situations, additional disclosures to those that IFRS require.

When it is appropriate to provide additional disclosure about the reconciliation of the opening deferred tax balance to the closing deferred tax balance?

Background
An undertaking has material unused tax losses and its management has no expectation that future taxable profit will be available before they expire.

Solution
IAS 12’s required disclosures may not in this case provide enough information to understand the current period’s financial statements. Management should present additional notes.