The Co has recorded Deferred tax assets in the books.Keeping in view the inavailaibilty of future profits agaisnt which this DTA can be reversed,the CO decides to write off the DTA.
Should the write off of DTA be shown as a below the line item or taken as a expense in profit and loss??
Recognition initially
SPLOCI-P.L. a/c
To SFP- deferred Tax
reversing it
SFP- deferred tax a/c
To SPLOCI-P.L. a/c
It should be presented in the tax section ie between PBT and PAT
CAclubindia
