Deffer tax
This query is : Resolved
22 August 2014
what is differ tax how it effects the finacials
23 August 2014
see if this helps https://www.caclubindia.com/articles/meaning-of-deferred-tax-liability-asset-in-simple-words-13385.asp
23 August 2014
1.Source:- AS-22 deals with deferred tax.
2.Focus:- It is based on the matching concept.
3.Reason:- Accounting income and taxable income may differ on account of various reasons.
4.Measurement:- The difference as aforesaid is itemized and permanent differences are eliminated. The rest is called timing difference.
5.Timing difference:- Those differences which lead to either saving in tax or payment of tax in the current year in the manner that such saving or payment is nullified in later years.
6.Recognition:- Deferred tax should be recognized for all timing differences subject to consideration of prudence in respect of deferred tax assets.
7.Rates:- Deferred tax is to be recognized using the tax rates that have been enacted on the balance sheet date. If not enacted can be measured on the tax laws that have been substantially enacted as on the b/s date.
8. Positioning:- deferred tax asset / liability should be disclosed separately in non- current assets and non- current liabilities respectively in the b/s.
9.Disclosure:- In the notes on accounts compliance of AS 22 may be mentioned as well as the workings of the deferred tax may be given.
2.Focus:- It is based on the matching concept.
3.Reason:- Accounting income and taxable income may differ on account of various reasons.
4.Measurement:- The difference as aforesaid is itemized and permanent differences are eliminated. The rest is called timing difference.
5.Timing difference:- Those differences which lead to either saving in tax or payment of tax in the current year in the manner that such saving or payment is nullified in later years.
6.Recognition:- Deferred tax should be recognized for all timing differences subject to consideration of prudence in respect of deferred tax assets.
7.Rates:- Deferred tax is to be recognized using the tax rates that have been enacted on the balance sheet date. If not enacted can be measured on the tax laws that have been substantially enacted as on the b/s date.
8. Positioning:- deferred tax asset / liability should be disclosed separately in non- current assets and non- current liabilities respectively in the b/s.
9.Disclosure:- In the notes on accounts compliance of AS 22 may be mentioned as well as the workings of the deferred tax may be given.
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
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- EPF FULL & FINAL RULES IN 2026
- Rental income gst and it purpose
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- FTS Taxable under 115A
- Experts need help
- Management System (IMS)
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Gift Received from nonblood relative
- 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
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
