At 30 June 2021, Zeem Ltd recognised a deferred tax asset of $8 000 and a deferred tax liability of $15 000, applying a tax rate of 30%. The Australian government has announced that it will decrease the tax rate for companies as of 1 July 2021 to 28%. Required Discuss with the class how the change in tax rate would affect the existing deferred tax balances and the calculation of tax in future years.

Include in your answer the adjusting journal entries that would be required, and how the adjustments were calculated. Discuss what Zeem Ltd would disclose for deferred tax (using the adjusted figures) if they decide to offset their figures.