Terms

This query is : Resolved

Share Report Follow Query Ask a Query

CA Saba Naaz

CA Saba Naaz (Querist)
Follow

22 January 2011 Please explain me the meaning of the terms :
1.) Deferred Tax Asset
2.) Arm's Length Transaction

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

22 January 2011 Deferred Tax Asset:-

An asset that is used to reduce the amount of tax that a company will have to pay in a later tax period. It is often associated with a loss carryover, and is used as a future write-off if the next tax period is expected to produce positive earnings. The asset is kept on the balance sheet. For example, a deferred tax asset of $100,000 from the previous year could be applied to before-tax income of $250,000 this year, resulting in taxable income of $150,000 ($250,000 - $100,000).

arm's length transaction:-

A transaction between two related or affiliated parties that is conducted as if they were unrelated, so that there is no question of a conflict of interest. Or sometimes, a transaction between two otherwise unrelated or affiliated parties.

Regards,

Message likes : 1 times

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

24 January 2011 saba naaz,

thank-you. can also put up any queries in this forum eminent experts will assist you.

Regards,

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Lalan Kumar Jha

Kamaljeet Kaur

Navneet Pratap Singh

RATI MALU

jayaraman

Subscribe Now

Terms

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA