DISCLOSURE OF DEFERRED TAX LIABILITY IN BS

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Ca Aashish Upadhyay (Querist)

13 August 2010 Kindly explain with reason the disclosure requirements in respect of DTL. One of my counterpart wants us to show under the Share Holders fund however i am thinking otherwise.

So please give me some authentic proofs in response to your kind answers.

Thanks and Regards

Aditya Maheshwari

Aditya Maheshwari (Expert)

13 August 2010 U can read any balance sheet of listed company.

below shareholders fund and loan funds.

Aditya Maheshwari

Aditya Maheshwari (Expert)

13 August 2010 As per AS - 22 para 32
Deferred tax assets and liabilities should be distinguished from assets and liabilities representing current tax for the period. Deferred tax assets and liabilities should be disclosed under a separate heading in the balance sheet of the enterprise, separately from current assets and current liabilities.

Explanation:

Deferred tax assets (net of the deferred tax liabilities, if any, in accordance with paragraph 29) is disclosed on the face of the balance sheet separately after the head ‘Investments’ and deferred tax liabilities (net of the deferred tax assets, if any, in accordance with paragraph 29) is disclosed on the face of the balance sheet separately after the head ‘Unsecured Loans’.

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CA Sanat Pyne

CA Sanat Pyne (Expert)

13 August 2010 AS PER AS 22
Deferred tax assets and liabilities should be disclosed under a separate heading in the balance sheet of the enterprise, separately from current assets and current liabilities.

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