Pure Foods Tasmania has reversed $4.5 million in deferred tax assets following a review by the Australian Securities and Investments Commission (ASIC), with the writedown representing 31 per cent of the company’s total assets.
The reversal was disclosed in the company’s half-yearly report for the financial year ending 30 June 2026, after ASIC’s financial reporting and audit surveillance program identified concerns with how the ASX-listed food manufacturer had recognised an unused tax loss in its full-year accounts to 30 June 2025.
ASIC found the recognition did not meet the requirements of Accounting Standard AASB 112 Income Taxes, which requires that an unused tax loss can only be recognised as a deferred tax asset where it is probable that future taxable profit will be available to utilise those losses.
In its half-yearly report, Pure Foods Tasmania said the writedown reflected a refinement in how it weights and times forecast profitability when assessing the recoverability of deferred tax assets.
“This refinement does not represent a change in accounting policy, but rather an enhancement to the Group’s methodology within the existing policy,” the company said.
The company added the tax losses remain available for future use as profitability improves.
Pure Foods Tasmania develops and sells premium Tasmanian and plant-based food products under the Woodbridge Smokehouse, Tasmanian Pâté, Daly Potato Co and The Cashew Creamery brands.
ASIC used the finding to remind financial report preparers that careful judgement is required when recognising deferred tax losses, noting that assessments of future profitability become increasingly uncertain the further out they are projected.
