is deferred tax is deducted while calculating EQUITY & NET WORTH
1 Replies
Raghav Toshniwal
(student)
(450 Points)
Replied 15 August 2010
Hello Saurabh,
For arriving at net worth, defeered tax liabilty is added , not deducted.....
NET WORTH= ORDINARY SHARE CAPITAL & APPLICATION MONEY
+ GENERAL RESERVE
+ DEFERRED TAX LIABILITY
+ SHARE PREMIUM
+ OTHER SUBSIDY
+ SURPLUS/ DEFICIT OF PROFIT & LOSS A/c
Deferred tax liabilty includes total liability i.e. previous yr liability plus current yr provision for deferred tax.....
REGARDS
RAGHAV
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