As 22 & AS 28

AS 1077 views 1 replies

 

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..??

Replies (1)
It is considered as timing difference bcz under the income tax impairment loss is not allowed as loss.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register