DEFERRED TAX ASSET OF A LOSS MAKING COMPANY Isa Ltd is a gold exploration company. Isa 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. Isa Ltd ($000s) 2020 2021 2022 2023 Deferred tax asset 24 200 133 200 197 000 300 800 At 30 June 2023, Isa Ltd is in financial distress due to a cash shortage and bank restrictions on providing any further funds. Required The auditors of Isa Ltd have asked for your advice on whether a deferred tax asset should be recognised for carried forward tax losses at 30 June 2023. Discuss with reference to AASB 112/IAS 12. CASE STUDY