a company earlier has disclosed by way of a note its deferred tax asset figure, but this time it has brought that very figure into accounts only by adding the same with general reserve. is their treatment is right?
1 Replies
Narayanan Balakrishnan
(Chartered Accountant)
(98 Points)
Replied 07 August 2009
As per AS-22 deferred tax asset can be recognised when there is reasonable certanity of realising tt. For recognising DTA on carried forward loss there should be virtual certainity. But the deferred tax recognised has to be included in the P&L account and cannot be adjusted directly in the opening reserves.
Recent Topics
- FORM 10 IEA IN Revised return
- ITC Eligibility on GTA
- Top Highest Tax-Paying Celebrities: FY 2023-24
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
- Agricultural Business Loss
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
Related Threads
CAclubindia
