I don't think that is correct, my understanding is that it is a three year rolling average with a year dropping out and a new one being added as each set of accounts are produced.FFP never resets. It's arguably only going to get worse for the next 2 years
If the losses decrease or if we go into profit that changes the picture and player sales is also a huge factor, hence the rush to sell Richarlison before the end of the accounting year.