while solving this i stucked...
Carrying amount = 40,00,000
WDV = 32,00,000
recoverable amount = 26,00,000
tax rate: 40 %
find out the impairment lossand the defferd tax effect thereof ,given that impairment losses not allowed for TAX purposes..
IN SOLUTION:
Carrying amt - Recoverable amount = I.Loss. 14,00,000
THIS 14,00,000 IS CONSIDERED AS TIMING DIFFERENCE...AS PER AS-22 ...IS THIS COORECT !!!
FROM THIS 14,00,000 deducted 8,00,000 ( difference due dep.accounting 40 lac - 32 lac)
therfore net timing difference 6,00,000
& finally DTA = 2,40,000.
why impairment loss has been considered as TIMING DIFFERENCE..??
CAclubindia
