Deferred Tax Expense Calculation

Comparison between Indian GAAP and Ind-AS/ IFRS

Under Indian GAAP, deferred tax expense is an aggregation from separate financial statements of each group entity and no adjustment is made on consolidation.

However, under Ind-AS/ IFRS, instead of presenting deferred tax expense as the aggregation from separate financial statements of the group constituents, deferred tax liability for all taxable temporary differences are recognised except to the extent the parent, the investor, the venturer or joint operator is able to control timing of the reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. Accordingly, deferred tax expense is recalculated in Consolidated Financial Statements.

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