19 June 2015
BOD approved final accounts on 31st July 2002
balancesheet date 31st March
for example,
in the finance act passed in may,2002 the income tax rate applicable to the company for assessment year 2002-2003 is demarked by 5%.so the income tax liability of the company would be reduced by the amount of rupees 50000
my question is:
what should be the treatment?
what is the reason behind that?
please anyone can tell me
19 June 2015
As per AS-4 any event occurring between the date of financial statements and its approval , if has an impact on the assets and liabilities that existed on the date of balance sheet should be adjusted for. In my opinion since the change in rate of tax affects the provision for taxation, you should adjust the same.
CAclubindia
