Deferred tax
This query is : Resolved
08 August 2011
My client has not provided for DT, this will be the first time applicability of AS22. For the current year there is DTL, and for the prior years for which no provision of DT was made, there is DTA. DT is arising only due to depreciation and no other item. As per AS22 on the first time applicability DTA/DTL should be charged or credited to revenue reserve. My question is how would you treat the DTA in the above case. Where do we show it? How do we disclose it? The company has substantial General reserve and PL balance. Thanks in advance for your help.
09 August 2011
Since none responded to this query i tried to resolve it by myself as self help is best help. The accumulated DTA can be set off with the DTL and the balance should appear at the face of the PL and Balance Sheet. The details should be disclosed in the notes to accounts.
09 August 2011
Providing DTL does not affect your tax liability for the current year or previous years. Now you can do the following
1) For Previous years deduct it from Reserves & Surplus and put a note to the accounts
2) For Current Year provide in the P & L a/c
1) For Previous years deduct it from Reserves & Surplus and put a note to the accounts
2) For Current Year provide in the P & L a/c
09 August 2011
For Previous years it was DTA, so it will have to be summed up with R&S. R & S is nothing but PL balance in my case. so what i am doing is setting of DTA accumulated with DTL current year. The net figure is being shown in the P&L. Keeping DTA requires reasonable certainty. is my approach correct?
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
- Post Office RD Interest
- Building and other construction workers welfare cess act 1996
- ITR validation error - Balance sheet is not filled
- Bank Accounts in Balance Sheet for ITR 3
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Annual return of gst limit
- Eway bill for machinery reparing
- TDS ON CASH WITHDRAWALS...
- Form 10BD Filling
- Registration as Authorised Representative of minor
- Change the gender in the registration of icai
- Lift replacement entries in housing society
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
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
