I need a clarification on the valuation of Minority interest & deferred taxes. My question is for the equity valuation purpose do we treat these two items as liability or assets. My confusion is because of the following:
Deferred taxes: As it arises because of the timing difference and on going concern basis I normally see in balance sheet that this item never gets reversed completely. Which means that though this is a tax liability it does not falls due and hence this cash is available to use in business.
Minority Interest: simply the other firms equity in the business, income is shared as like other shareholder, no interest is paid on this, so should be treated as equity.
CAclubindia
