Will the tax authorities take cognisance of financial statements prepared as per Indian Accounting Standards converged with IFRS for the purposes of filing tax returns?
While the press release does not talk about the consequential impact on taxation laws, it is expected that there will be guidelines/changes in law, which will provide clarity on this aspect. Further, assuming that the regulators will take some time to give cognisance to the Indian Accounting Standards converged with the IFRS under the tax laws, companies may need to maintain parallel sets of records to determine taxable income/book profits as per the current tax laws. Further, it can also be expected that in case of Minimum Alternative Tax (MAT), the law may require certain additional adjustments, say on account of fair value gains or losses and so on.
Related Questions
- When the first interim financial statements are prepared under the Indian Accounting Standards converged with IFRS, under which standards will the comparative ones be presented?
- For following the converged Indian Accounting Standards for the specified companies from 1st April, 2011, what is the date at which date the net worth will be calculated?
- Can a company discontinue applying the Indian Accounting Standards converged with IFRS based on reassessment of eligibility criteria on a later date?
