Accounting standards
This query is : Resolved
14 June 2015
Can anyone expalin briefly AS 22 (Taxes) with simple illustration
Can anyone expalin briefly AS 22 (Taxes) with simple illustration
15 June 2015
1.Source:- AS-22 deals with deferred tax.
2.Focus:- It is based on the matching concept.
3.Reason:- Accounting income and taxable income may differ on account of various reasons.
4.Measurement:- The difference as aforesaid is itemized and permanent differences are eliminated. The rest is called timing difference.
5.Timing difference:- Those differences which lead to either saving in tax or payment of tax in the current year in the manner that such saving or payment is nullified in later years.
6.Recognition:- Deferred tax should be recognized for all timing differences subject to consideration of prudence in respect of deferred tax assets.
7.Rates:- Deferred tax is to be recognized using the tax rates that have been enacted on the balance sheet date. If not enacted can be measured on the tax laws that have been substantially enacted as on the b/s date.
8. Positioning:- deferred tax asset / liability should be disclosed separately in non- current assets and non- current liabilities respectively in the b/s.
9.Disclosure:- In the notes on accounts compliance of AS 22 may be mentioned as well as the workings of the deferred tax may be given.
2.Focus:- It is based on the matching concept.
3.Reason:- Accounting income and taxable income may differ on account of various reasons.
4.Measurement:- The difference as aforesaid is itemized and permanent differences are eliminated. The rest is called timing difference.
5.Timing difference:- Those differences which lead to either saving in tax or payment of tax in the current year in the manner that such saving or payment is nullified in later years.
6.Recognition:- Deferred tax should be recognized for all timing differences subject to consideration of prudence in respect of deferred tax assets.
7.Rates:- Deferred tax is to be recognized using the tax rates that have been enacted on the balance sheet date. If not enacted can be measured on the tax laws that have been substantially enacted as on the b/s date.
8. Positioning:- deferred tax asset / liability should be disclosed separately in non- current assets and non- current liabilities respectively in the b/s.
9.Disclosure:- In the notes on accounts compliance of AS 22 may be mentioned as well as the workings of the deferred tax may be given.
15 June 2015
dear
its..(AMT DTL)i.e Accounting Income more than Taxable Income then its Deferred tax Liability. & vice versa.
its..(AMT DTL)i.e Accounting Income more than Taxable Income then its Deferred tax Liability. & vice versa.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CASH GIFT FROM BLOOD RELATIVE
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- Rent claimed on building given on permissive possession basis
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
