17 May 2009
one of y client has deferred tax asset of rs. 45150/-. i They have not calculated it. They are of the opinion that since this is a small amount it is not required to be created. I want to know whether there is any limit to which AS 22 does not apply. I mean value wise.
17 May 2009
There is no limit mentioned in the AS22. But prudential basis , we account normally only liability. if it is deferred tax asset, you need not accrue for it.
17 May 2009
Deferred tax asset is to be recognized only if the auditee is virtually certain that sufficient taxable income will be available in the coming years against which such deferred tax asset can be realized.
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