is deferred tax is deducted while calculating EQUITY & NET WORTH
Saurabh Toshniwal (ca final) (2363 Points)
11 August 2010is deferred tax is deducted while calculating EQUITY & NET WORTH
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
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)
CAclubindia
