Question
On 22nd July 2022 ILU shareholders voted to demerge their rutile mining operations in Sierra Leone into a separate company, Sierra Rutile Holdings Ltd. How
On 22nd July 2022 ILU shareholders voted to demerge their rutile mining operations in Sierra Leone into a separate company, Sierra Rutile Holdings Ltd. How will this transaction impact your audit plan for ILU?
Point 1: The derecognition of x & y items that are Sierra Rutile's will decrease Iluka's balance sheet items. Tests on the rights and obligations of many assets will be required
Point 2: The possible creation of another account to meet the the "transitive service agreement" on Iluka's side.
Point 3: Possible revaluation of Iluka assets including perhaps deferred tax to reflect Iluka's reduced revenue streams.
PLEASE ELABORATE ON THESE POINTS.
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