Deferred Tax Liability
This query is : Resolved
22 August 2009
My company does not expect to be profitable for two to three years after 31.03 09.
For the timing difference in depreciation should we provide deferred tax liability?
Or consider such liabilty when we are sure of making profits?
For the timing difference in depreciation should we provide deferred tax liability?
Or consider such liabilty when we are sure of making profits?
22 August 2009
You have consider Deferred TAx liability irrespective of whether you will make profit or loss in future. DTL on the date of Balance sheet should be reflected.
22 August 2009
prudence level is not to be checked for making DTL.So , even if ur Co. is goin to incurr loss .. u have to reflect the DTL in Balance sheet.
22 August 2009
there is condition with provision for deffered asstes but not with deffered liability,so u can....
22 August 2009
Some note for providing liabilty and not providing asset to be given?
Any format
Any format
01 September 2009
We are driven by the prudence principle which states that we have to recognise all losses- both actual and anticipated, but we cannot ever recognise any gain unless we realise it. So, we create DTA only to the extent of our estimation taxable profit in the future. But DTL always.
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