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<h1>AS 22: Align Tax Expenses with Revenue; Recognize Deferred Tax for Timing Differences; Follow Disclosure Guidelines.</h1> Accounting Standard (AS) 22 addresses the accounting treatment for taxes on income, focusing on the alignment of tax expenses with related revenue and expenses within the same period. It highlights the differences between taxable and accounting income, which arise due to timing and permanent differences. Timing differences, which can reverse in future periods, result in deferred tax assets or liabilities. The standard mandates the recognition of deferred tax for all timing differences, subject to prudence, especially for deferred tax assets. It provides guidelines on measuring current and deferred taxes, emphasizing the use of enacted tax rates and prohibiting discounting. The standard also outlines presentation and disclosure requirements, including the offsetting of tax assets and liabilities and the need for separate disclosure of deferred tax items in financial statements.