The basic premise is that you can not clock up losses.
But the FFP loss statement - is a separate calculation to any losses shown in the company accounts.
But then came the exemptions - infrastructure was one, recent change of ownership was another , then you could should losses provided you had a process in place to clear them.
It reminds me of the covid lockdowns - the first one everything bar supermarkets closed, then slowly the exemptions came in - in the end it was a free for all.
Same with FFP really.