Applicability of Deferred Tax for Qtrly Publication

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Krishna Chaitanya M (Querist)
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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)
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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)
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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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