Friday, April 20, 2012

Deferred Taxes - Finance 3.0 - Social Network for Finance

You have raised a very valid point. I am too a member of the issuing authority, i.e. ICAI. As a matter of fact, ICAI remained into sleeping mode for long. It issued very few accounting standards only.

The need of issuing a specific accounting standard on deferred taxes was felt due to the growing confusion among practitioners on it. Besides, accounting standards are issued by a committee of ICAI. The committee has to follow a very detailed and lengthy procedure before it can make it a final issuable document.

You will appreciate the fact that there are several issues that need to be resolved. One of them include accounting for derivatives. We have been using AS-30 for accounting for derivatives. Although it doesn't cover the issue very comprehensively. There are so many issues pending with the committee.

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