QuestionsCategory: SA-580What it means ?? Booked dta,as their is reasobvle uncertainity
Shreyansh VyasShreyansh vyas asked 6 years ago
1 Answers
RaviRavi Staff answered 6 years ago

As per AS 22 Deferred Tax Asset should be booked only if there is reasonable certainty that this asset will give future economic benefit
reasonable certainty means future expectations backed by concrete evidence such as agreements / sales order etc   
as it involves lot of judgment about future performance and management action, we should take WR from management that there is reasonable certainty that benefits will flow