| INTRODUCTION | |
| You've been asked to prepare model the forecast asset schedules for a new business. As part of the analysis you are | |
| required to analyze the impact on the forecast deferred tax. | |
| To help you prepare the analysis you have been provided with following information: | |
| FORECAST CAPITAL EXPENDITURE | |
| All capex amounts presented the following table are specified in provided in real 2012 US$m. All Capital expenditure | |
| is incurred at the first day of each calendar year. | |
| 2012 2013 2014 2015 2016 2017 2018 2019 2020 | |
| Capex 10 64 69 99 89 39 34 23 29 | |
| 2021 2022 2023 2024 2025 2026 2027 2028 2029 | |
| Capex 69 99 89 39 34 23 29 69 99 | |
| FORECAST INFLATION | |
| You have been advised that the inflation rate is forecast to be 3% per annum. | |
| ACCOUNTING TREATMENT | |
| For accounting purposes, depreciation on the Capex is calculated on a straight line basis over 12 years. | |
| TAX TREATMENT | |
| For taxation purposes, depreciation on Capex is calculated using the diminishing value method at a rate of 40% per | |
| annum. The taxation rate is currently 30% per annum but is forecast to moving down to 28% from the start of 2016. | |
| STYLE CONVENTIONS | |
| In developing your model, you are expected to adhere to the ModelOff style conventions. At the end of this section | |
| you will be required to submit the model you built when answering this question. | |