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A company has requested clarification on whether the previous year's financial statements of an investee company should be used to determine impairment and its subsequent reversal. The DGT has ruled that the most recent financial statements approved before the tax filing deadline must be used, or those from the previous financial year if the most recent ones have not yet been approved.
This ruling clarifies the specific accounting documents to be used for calculating impairment and reversals, ensuring consistency in the determination of the tax base for investments in subsidiaries or associates.
The tax team reviews your specific situation.
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