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Accounting standard 22
Accountancy
Here in amount debited to P&L is different but in the video in that illustration amount debited to P&L is different Explain
Answers (8)
CA Suraj Lakhotia Admin
Study material is incorrect. You need to take credit for MAT as well.
So in the exams should we do according to study material or the correct answer
Thread Starter
archana shanmugamSo in the exams should we do according to study material or the correct answer
Correct answer. Guidance note - In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in this Guidance Note, the said asset should be created by way of a credit to the profit and loss account and presented as a separate line item therein.
CA Suraj Lakhotia Admin
Correct answer. Guidance note - In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in this Guidance Note, the said asset should be created by way of a credit to the profit and loss account and presented as a separate line item therein.
However, if you take the assumption that MAT credit is not yet an asset then the solution given in study material is also appropriate.
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