Treatment of deferred tax asset and liability in net worth


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Querist : Anonymous

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Querist : Anonymous (Querist)
14 September 2011 Dear Sir/Madam,

Please let me know treatment of Deferred Tax Assets and Liability in calculation of Net Worth of Company.

14 September 2011 DTA and DTL should be treated as normal assets and liabilities for Computation of Networth.

By This I mean in Computation of Net Worth ,

Deduct DTL from Total Assets

and Include DTA in Total Assets.

Though it must be said CCI Guidelines , Which is now not applicable on Valuation is silent on this Aspect.

14 September 2011 One Need not to consider The DTA and DTL for calculation of Net worth of Company.

15 September 2011 I agree with the expert


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