14 June 2008
deferred tax liablity to be calculated on clg wdv of assets of last year and deducted from profits if DTL is created for first time .
my question is so how to calculate DTL from second year . on clg bal of wdv of assets or on depritiation amount creating timing difference .?????????????????
awaiting for best reply kindly keep query open till solved .
16 June 2008
If you work on WDV basis we can estimate when the DTL created now and subsequent years getting reversed provided there is no addition to the existing assets. So it is always advisable to calculate on WDV basis instead of using Just depreciation difference. Ex:- If u estimat WDV for next 6 years for the existing assets, you can infer the reversal time of the DTL.
CAclubindia
