Deferred Tax
This query is : Resolved
29 August 2010
Respected All,
In the F.Y. 08-09, a company wrongly treated deffered tax asset as a deffered tax liability in accounts.
How will the company rectify this mistake in the Balance sheet of 09-10.
Please explain the disclosures to be made in the Balance sheet and entries to be made in accounts.
Regards
Jyoti
In the F.Y. 08-09, a company wrongly treated deffered tax asset as a deffered tax liability in accounts.
How will the company rectify this mistake in the Balance sheet of 09-10.
Please explain the disclosures to be made in the Balance sheet and entries to be made in accounts.
Regards
Jyoti
29 August 2010
Accounting entries for the FY 09-10
i. To nullify the effect of 08-09 mistake
Deferred Tax Liability Dr
To P/L
ii.To effect the rectification entry
Deferred TAx Assets Dr
To P/L
iii,Reversal of timing difference if applicable.
Disclosure
The effect of the rectification should be disclosed as prior period item in the statement of profit & loss account as per the AS 5.
i. To nullify the effect of 08-09 mistake
Deferred Tax Liability Dr
To P/L
ii.To effect the rectification entry
Deferred TAx Assets Dr
To P/L
iii,Reversal of timing difference if applicable.
Disclosure
The effect of the rectification should be disclosed as prior period item in the statement of profit & loss account as per the AS 5.
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
- Fixe term employment
- Is any professional CA is here please reply
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Putting a heading on received mail
- Gift Received from nonblood relative
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Experts need help
- Section 50-fixed asset-->building ceases to exist
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
