Pratik Nitin Vyas (Employed) (354 Points)
03 August 2016
Shreesh Kumar
(CA Final)
(122 Points)
Replied 03 August 2016
Dear Pratik,
You must be known with the rule that DTA/DTL arises due to timing difference is charged to Statement of Profit and Loss. It is shown like this as per requirement ofPart II of Schedile III of Companies Act 2013
Profit Before Tax XXXX
Less: Tax Expenses
Current Tax XXXX
Deferred Tax XXXX
Profit after Tax XXXX
After adjusting current deferred tax with opening balance of DTA/DTL balance amouunt shuld be shown in balance sheet like this:
Non Current Liabilities:
Deferred Tax Liabilities(Net) XXXX
Non Current Assets:
Deferred Tax Assets(Net) XXXX
Account will not be closed untill the timing defference ceased to exist.
Regards
Shreesh Kumar
Pratik Nitin Vyas
(Employed)
(354 Points)
Replied 13 August 2016
Sir, but account will not be closed as it is a balancec sheet items but what about the PNL items.
Eg:-
DTA A/c Credited - PNL
DTA A/c Debited - B/S
DTL A/c Debited - PNL
DTL A/c Credited - B/S.
Then while closing the PNL line items to Retained earnings I have to close DTA / DTL debited or credited to PNL to reatined earnings or not ?
CAclubindia
