Applicability of Deferred Tax for Qtrly Publication

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This query is : Resolved

Krishna Chaitanya M (Querist)

25 July 2008 Sir,

I am doing the internal audit of a listed company. It has to go for qtrly publication.

1)I want to know whether deferred tax asset/deferred tax liability should be calculated on a quarterly basis or yearly basis?
2) Can recognizing the deferred tax at the year end (31 march) instead of recognizing it in the P& L a/c for quarter end(30june, 30sept, 31st dec) amounts to non-compliance of AS 22 ?

Plz elaborate

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)

25 July 2008 Yes, the deferred taxes are to be incorporated in the Qtrly results otherwise it will tentamount to deviation from the standard and cosequently a non-compliance.

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)

25 July 2008 Accounting for Taxes on Income:

Companies shall be required to comply with the accounting standard on "Accounting for Taxes on Income" in respect of the quarterly un-audited financial results with effect from the quarters ending on or after September 30, 2001.

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