The company carries on the business of financial services.It has brought forward losses.But is making profit from past 2 years and paying tax under Provisions of 115JB.The company did not have any fixed asset, acquired fixed asset in middle of last financial year.But no provision for DTA or DTL was made last year.
My query is:
1) how should the deferred tax be treated this year?

2)What is the effect of brought forward losses on DTA or DTL?

3)Should the DTA or DTL added or reduced from brought forward losses?

4)The company has a brought forward loss of 10Lacs still ,based on the concept of prudence since the company is making profit from 3 years we can expect it to make profit in the next year also.As the company is paying taxes under MAT provisions on Book profit,can the company set off the MAT credit against the regular tax payable if the company makes huge profits next year?How can this be done?

5)Does MAT provisions have any bearing on Deferred tax? If yes how should the deferred tax be treated?

6)If the Company is not carrying financial services will the answers for above questions be different? What will be the answers?
[..Sir i understand there are too many questions but i really need answers for all of them as i have to complete the finalization.I hope i can get answers for these questions.]

Dear Colleagues,

In case any AS become first time appliacble for any FY,do we need to provide comparative figure of last year also. e.g if turnover crosses 50 crores for FY 2008-09, do we need to prepare Cash flow for FY2007-08 also.

If not pls provide some notification/circular/Expert Advisory opinion reference.

A new Computer moniter replaces with old moniter. old moniter is not in condition of work.
Will new moniter Be capitalised?

Will The Treatement Be different, if old moniter is in condition of Work and transfer that into stock?

The company carries on the business of financial services.It has brought forward losses.But is making profit from past 2 years and paying tax under Provisions of 115JB.The company did not have any fixed asset, acquired fixed asset in middle of last financial year.But no provision for DTA or DTL was made last year.
My query is:
1) how should the deferred tax be treated this year?

2)What is the effect of brought forward losses on DTA or DTL?

3)Should the DTA or DTL added or reduced from brought forward losses?

4)The company has a brought forward loss of 10Lacs still ,based on the concept of prudence since the company is making profit from 3 years we can expect it to make profit in the next year also.As the company is paying taxes under MAT provisions on Book profit,can the company set off the MAT credit against the regular tax payable if the company makes huge profits next year?How can this be done?

5)Does MAT provisions have any bearing on Deferred tax? If yes how should the deferred tax be treated?

6)If the Company is not carrying financial services will the answers for above questions be different? What will be the answers?
[..Sir i understand there are too many questions but i really need answers for all of them as i have to complete the finalization.I hope i can get answers for these questions.]

When the value of intangible assets like goodwill,patent get less then this less amount shown in amortization rather then dep. But when its value increased then what should be the name of head instead of appreciation? Thanks in advance

We have purchased memory stick for laptop and pendrive in what head they are clubbed and if they treated as assets then what would be Dep Rate?

We have purchased Tally new version and other software so in what Head name it should be entered in books and what nature of this head ? and if assets then we can charge dep on it and if yes then in what rate? Thanks in advance

According to AS 14 in case of amalgamation in the nature of merger the purchasing co takes over all the assets & liabilities...Does it include even fictitious assets???? If not what will b the adjustment regarding that...I m a PCC student...Looking forward to ur help...

Suppose A purchases car in his name and takes loan for it in the names of A and B. Whether both can claim depreciation & interest on loan ? If yes, in which proportion ? please reply with section or any judgement etc.

If a Pvt Ltd Co. is a partner in a Partner Ship Firm Then the treatment if....
a)Out of Seven Directors Two Directors are also the partners in the Firm.
b)Can we give interest on capital & Partners Salary To the Pvt Ltd. Company
c)How is The Pvt Ltd. Company Show this Investment in his books of Accounts.