Underskuddsføring

Underskuddsføring, or loss carryforward, is the tax and accounting practice of transferring a business loss from one year forward to offset future profits. It is used to smooth tax liabilities through periods of downturn and to reflect the economic reality that losses today may be recoverable against future earnings.

In tax systems, loss carryforward allows a company to reduce future taxable income by applying prior-year losses. The rules vary by country and can specify how long losses can be carried forward, the maximum offset per year, and whether losses can offset only ordinary income or also capital gains. Some jurisdictions also allow carryback to previous years or impose limitations after ownership changes or restructurings.

From an accounting perspective, a recognized loss carryforward can create a deferred tax asset if it is probable that future taxable profits will be available to utilize the losses. The recognition and value of this asset depend on expectations of future earnings and the applicable tax rules. Many systems impose criteria to determine recoverability, which may affect how the asset is presented in financial statements.

Practical considerations include potential restrictions such as changes of ownership, which can limit the use of losses, and group-relief arrangements within corporate groups. Accurate record-keeping and timely filing on tax returns are essential to ensure losses are properly utilized and documented.

Example: Year 1 incurs a net operating loss of 2 million. Year 2 earns 1.5 million; with carryforward, 1.5 million offsets taxable income, leaving 0.5 million of the loss to be carried forward to future years. Rules and outcomes depend on jurisdiction.