ACCOUNTING

Understanding And Implementing

Accounting Standard (AS) 22
Accounting For Taxes On Income
Background Material for Seminars on Accounting Standard (AS) 22,
Accounting for Taxes on Income
Background Material for Seminars on Accounting of Financial Accounting Standard issued by the
Standard (AS) 22, Accounting for Taxes on Income, has Financial Accounting Standards Board in USA,
recently been released. The publication, inter alia, con-
● Text of AS 22, and
tains
● Accounting Standards Interpretations issued on AS 22.
● Key requirements of AS 22 explained with examples
and dealing with aspects such as: The background material is priced at Rs. 40 and can
be obtained from the Institute's sales counters at New
✔ Recognition of deferred tax assets in case the
Delhi and the Regional Offices at Mumbai, Kolkata,
same can be realised against deferred tax liabilities
Chennai and Kanpur.
✔ Manner of disclosure of major components of
Persons who desire to obtain above publication by
deferred tax assets and deferred tax liabilities
post may send Demand Draft in favour of the Secretary,
● Frequently asked questions (FAQs), such as, ICAI, for the cost of the background material plus the
postal charges (Rs. 19, if desired by unregistered parcel;
✔ Is it permissible not to recognise deferred tax lia-
Rs. 36 if required by registered parcel).
bility on the ground that a company expects that
there will be losses both for accounting and tax Background material on the following newly issued
purposes in near future? Accounting Standards are also available:
✔ Can a deferred tax credit be considered for ascer- 1. AS 17, Segment Reporting (price Rs. 50)
taining the quantum of dividend to be declared?
2. AS 18, Related Party Disclosures (price Rs. 30)
✔ How should the diminution in the value of a cur-
3. AS 19, Leases (price Rs. 40)
rent investment be dealt with keeping in view the
requirements of AS 22? 4. AS 20, Earnings Per Share (price Rs. 40)
✔ How should the accumulated deferred tax liabil- 5. AS 21, Consolidated Financial Statements (price Rs.
ity be absorbed if the revenue reserves are inade- 30)
quate at the first occasion AS 22 is applied?
6. AS 23, Accounting for Investments in Associates in
✔ What is the tax effect of sale of fixed assets, con- Consolidated Financial Statements (price Rs. 30)
sidering the block of assets approach followed in
The above publications also contain the features as
the Income-tax Act, 1961?
mentioned in case of background material on AS 22
✔ How should deferred tax assets and liabilities be above.
disclosed in the balance sheet of a company?
The orders may be sent to Postal Sales Section,
● Comparison of AS 22 with the corresponding Institute of Chartered Accountants of India,
International Accounting Standard and the Statement Indraprastha Marg, New Delhi - 110 002. ■

THE CHARTERED ACCOUNTANT

1190 JUNE 2003