a company earlier has disclosed by way of a note its deferred tax asset figure, but this time it has brought that very figure into accounts only by adding the same with general reserve. is their treatment is right?
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AS 22
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As per AS-22 deferred tax asset can be recognised when there is reasonable certanity of realising tt. For recognising DTA on carried forward loss there should be virtual certainity. But the deferred tax recognised has to be included in the P&L account and cannot be adjusted directly in the opening reserves.
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