This NPAT of $12m is recognising tax benefit of realising (recovering) all the prior year capital and exploration costs.
It is made up of (rough figures) $2m cap losses and $12m income losses (less current year expenses $2m) all shown in note 4.
Its prima facie based on recognising the benefit of the Miracle deal as this new asset can be offset against tax payable on the sale.
I challange the income loss asset at this point as it is not realised for at least 2 years on 1st shipment but it does show the quirkyness of Acc standards to show a profit in year to balance a new asset (tax losses or future benefit) in this year.
Suffice to say if the deal goes through CZR wont have a tax liability as it will be offset so all funds received are cleared funds for future use (and unfranked divvy for the long suffering)
CZR Price at posting:
24.0¢ Sentiment: Hold Disclosure: Held
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