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.
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.
CAclubindia
