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as per AS 26. transition to use the carrying value
as per previous GAAP.
Issue 6: Deferred tax
Accounting Standards Ind AS Impact on company’s financial
(Erstwhile IGAAP) statements
As per AS, deferred taxes are As per Ind AS, deferred On the date of transition to Ind
accounted as per income taxes are accounted as per AS, deferred tax liability would
statement approach balance sheet approach. be increased by Rs. 25,000.
Journal Entry on the date of transition
Particulars Debt (Rs.) Credit (Rs.)
Retained earnings Dr. 25,000
To Deferred tax liability 25,000
32.11
