08 September 2016
Can somebody give an easy example of balance sheet approach of calculating deferred tax asset/ liability ? For example, WDV as per BOOKS : 1085291.09 WDV as per Income Tax Act : 655305 which amount will appear where in balance sheet? why is there difference when we calculate Deferred tax asset/liability by comparing depreciation as per books and depreciation as per Income Tax Act?
08 September 2016
You need to read and understand AS-22 for the concept of deferred tax. In the given example, you need to apply the current corporate tax rate on the difference of the two figures. The resultant amount will be Deferred Tax Liability.
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