1. 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) 2023 24 200 2024 133 200 2025 197 000 2026 300 800 Deferred tax asset Isa Ltd received a government grant at the beginning of 2027. At 30 April 2027, Isa Ltd identified a gold mine which would generate profit $3,500,000 from 2028 for the following 10 consecutive years. Isa Ltd incured a further loss $900,000 in 2017. Required a) The accountant 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 2027. Discuss with reference to AASB 112/IAS 12. b) How would the government grant affect the calculation of carry-forward tax losses