toslink shares the same specification as digital coax: S/PDIF. It can transfer anything that the S/DPIG specification can do. I believe this is limited at 24/96 for 2-channel PCM. It can do the maximum bandwidth of old school Dolby Digital and DTS. The Dolby Digital Plus format may have problems. Obviously, it will not carry hi-res bluray audio formats Dolby TrueHD and DTS-MA HD.
