Nunya Ltd is a mining company. Nunya Ltd has recognised a deferred tax asset balance for tax

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Nunya Ltd is a mining company. Nunya Ltd has recognised a deferred tax asset balance for tax losses in its statement of financial position for each of the past four years as follows.

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At 30 June 2026, Nunya Ltd is in financial distress due to a cash shortage.

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The auditors of Nunya Ltd have asked for your advice on whether a deferred tax asset should be recognised for carried forward tax losses at 30 June 2026. Discuss with reference to AASB 112/IAS 12.

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Financial Reporting

ISBN: 9780730396413

4th Edition

Authors: Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes

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Question Posted: Apr 07, 2024 12:02 AM

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Nunya Ltd is a mining company. Nunya Ltd has recognised a deferred tax asset balance for tax

Question:

2023 Deferred tax asset 30 000 Nunya Ltd (S000s) 2024 120 000 2025 2026 180 000 300 000

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Nunya Ltd is in financial distress at 30 June 2026 and the recognition of a deferred tax asset for tax losses is inappropriate in these circumstances ...View the full answer

Financial Reporting

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