The Australian Securities & Investments Commission reported that Pure Foods Tasmania Limited has reduced the deferred tax assets recognised in its 2025-26 half-yearly report by AUD 4.5 million following a review under ASIC’s financial reporting and audit surveillance program. ASIC’s review of the company’s financial report for the year ended 30 June 2025 raised concerns that recognition of an unused tax loss as a deferred tax asset did not meet AASB 112 Income Taxes, which requires it to be probable that future taxable profit will be available to utilise the losses. Pure Foods Tasmania reversed AUD 4,570,855 of deferred tax assets, described as 31% of its total assets, and disclosed the write-back in its half-yearly report for the financial year ending 30 June 2026, attributing the adjustment to updated forecasts and a refined approach to weighting and timing forecast profitability. ASIC reminded financial report preparers that recognising deferred tax losses as deferred tax assets requires careful judgement, particularly for later-period profit forecasts where uncertainty increases.
Australian Securities & Investments Commission 2026-04-24
Australian Securities & Investments Commission review leads Pure Foods Tasmania to reverse AUD 4.5 million deferred tax assets
The Australian Securities & Investments Commission reported that Pure Foods Tasmania Limited reduced recognised deferred tax assets by AUD 4.5 million in its 2025-26 half-yearly report following a financial reporting and audit surveillance review. ASIC had raised concerns that recognition of unused tax losses as deferred tax assets did not meet AASB 112 Income Taxes, leading the company to reverse AUD 4,570,855, or 31% of total assets, and disclose the write-back with updated profitability forecasts.