Deferred tax liability on special reserve required; banks must create DTL and adjust prior uncharged amounts. Banks must recognise a deferred tax liability on the Special Reserve created under Section 36(1)(viii) per Accounting Standard 22. Unrecorded DTL as at March 31, 2013 may be adjusted directly from Reserves with disclosure in the 2013-14 Notes to Accounts. From the year ending March 31, 2014, DTL on amounts transferred to the Special Reserve should be charged to the Profit and Loss Account. The entire Special Reserve may be reckoned for computing Tier-I capital.
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Deferred tax liability on special reserve required; banks must create DTL and adjust prior uncharged amounts.
Banks must recognise a deferred tax liability on the Special Reserve created under Section 36(1)(viii) per Accounting Standard 22. Unrecorded DTL as at March 31, 2013 may be adjusted directly from Reserves with disclosure in the 2013-14 Notes to Accounts. From the year ending March 31, 2014, DTL on amounts transferred to the Special Reserve should be charged to the Profit and Loss Account. The entire Special Reserve may be reckoned for computing Tier-I capital.
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