Hi!
Some rechnical problem occured to I could post only part earlier.
Now, when we prepare Balance Sheet at the end of reporting period we make provision for current tax i.e. tax payable as per tax laws for current year.
And whatever tax is paid as advance tax during the year is debited to a seperate a/c like 'Advance Tax' a/c.
Now the question while drafting final balance sheet shall amount of 'advance tax' shall be shown as 'Current Assets' & provision as 'Current Liabilities'. So the AS-22 clarifies in this regarding as if there is enforceable right the set off both a/c other wise show seperately.
reasonable certainty -->
there is probability like history of high earning.
virtual certainty -->
with some convincing evidence.
With Regards,
Kunal Agrawal