Refer any good book or study material and you will be able to understand the meanings n all (Do this before posting any such question).
However for ur knowledge, Accounting Income calculated as per prevailing standards and customs is usually different from taxable Income calculated as per tax laws of land, thus tax paid by any ebterprise is different from what it shud pay as per its accounting income.
These difference are generally temporary in nature and they are set-off in next years; for the sake of consistency of current period (since we are showing accounting income in final accounts and not taxable income)deffered tax asset or liability is created in books.
For eg Some exp are disallowed in C/Y but allowed in next years (say preliminary exp are allowed in 5 yrs but in books thy are booked in 1 year only)and hence DTL shall be created for getting the right effect.
31 March 2011
Timing difference may lead either: Tax of initial years being higher and subsequent years being lower. (Pay tax now, Save tax later).Leads to creation of Deferred Tax Asset.
Tax of initial years being lower and subsequent years being higher. (Save tax now, Pay tax later).
Leads to creation of Deferred Tax Liability. This is the essence of AS-22.