AS 21 : Consolidation : Previous year Tax expenses Treatment
This query is : Resolved
07 December 2025
Hello Sir While preparing consolidated financial statement, there is previous financial year income tax expenses.
Now my Query is
1. should I deduct previous year tax expenses from consolidated profit to arrive at EPS. or should I adjust directly from reserve and surplus
2. Is Tax expenses do not comprises previous year tax expenses same as stand alone financial statement Schedule 3 Division 1?
Please share your view
Now my Query is
1. should I deduct previous year tax expenses from consolidated profit to arrive at EPS. or should I adjust directly from reserve and surplus
2. Is Tax expenses do not comprises previous year tax expenses same as stand alone financial statement Schedule 3 Division 1?
Please share your view
08 December 2025
1. Should you deduct previous year tax expenses from consolidated profit for EPS?
✔ YES.
Report it as a prior period item through P&L — never adjust directly from reserves.
2. Does ‘Tax Expenses’ exclude previous year tax expenses like in standalone accounts?
✔ YES.
Prior period tax must be presented separately, not under current year tax.
✔ YES.
Report it as a prior period item through P&L — never adjust directly from reserves.
2. Does ‘Tax Expenses’ exclude previous year tax expenses like in standalone accounts?
✔ YES.
Prior period tax must be presented separately, not under current year tax.
08 December 2025
Thank You Sir.. Now got clarity
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