Tanked Ltd is a manufacturer based in Berrimah. The COVID pandemic has meant that in the last three years the financial statements have been showing losses. This has resulted in staff being made redundant in an effort to reduce costs. The current downturn in the economy has also meant that there is a greatly reduced demand for their product. Previously the business each year expensed the increase in the provision for long service leave and future redundancy payments, with the provisions resulting in the creation of deferred tax assets. The redundancies have meant that the staff were paid, in addition to their redundancy payments, their long service leave entitlements. The payments caused a substantial tax deduction which has resulted in a large tax loss for the year 2021/22.

Required:

a) How is AASB 112 applied to the long service leave and redundancy provisions and the recognition of deferred tax assets resulting from them? Is this treatment any different from the recognition of deferred tax assets from tax losses?