Question 2 (20 Marks) Ipswich Ltd is engaged primarily in agricultural pursuits as well as in forestry products, including the management of its own forest reserves. Unfortunately, in the current year an eruption of a volcano in the mountain range bordering the companys operations resulted in the destruction of 40 000 hectares of standing timber, harvested logs, forestry buildings and equipment. As a result, the company recognised a $80 million tax loss in the current period. The management of Ipswich Ltd are debating whether it can raise a deferred tax asset in relation to this loss in the financial statements for the current period. Required: Prepare a report to management providing advice on the recognition of a deferred tax asset and specifying the conditions, if any, under which the asset could be recognised.