Recognition of deferred tax assets   LO5 Goldon Ltd manufactures its products in Australia and is subsidised by the Australian government, which is keen to retain a strong manufacturing sector in Australia. In the past, Goldon Ltd has relied heavily on the export of its products to the United States. However, because of the good economic conditions in Australia, the Australian dollar has risen relative to the US dollar. In 2019 the company’s profits have declined as sales both in Australia and overseas have fallen. As a result, the company has had to retrench some of its employees as it has endeavoured to streamline its business and search for new markets. The company has always had a generous employee scheme whereby employees were entitled to good long service leave payments as well as payments in the event of redundancy. These expenses were recognised for financial reporting purposes on an annual basis but no tax deductions were allowed until cash payments were made. The company has raised deferred tax assets in relation to these items in its financial statements. On retrenching its employees, the company has been able to claim tax deductions for the long service leave and retrenchment payouts. This has resulted in the company recording a tax loss in 2019. Required Write a report to the group accountant of Goldon Ltd, covering your assessment of the company: 1. continuing to raise deferred tax assets in relation to long service leave and redundancy payouts 2. raising a deferred tax asset in relation to the current period tax loss 3. raising any deferred tax liabilities such as for depreciation of the manufacturing machinery.