Accounting Standard 22 AS-22 of the ICAI

Whether Accounting Standard 22 (AS-22) of the ICAI (Institute of Chartered Accountants of India) entitled ‘Accounting for taxes on income’ insofar as it relates to deferred taxation is inconsistent with and ultra vires the provisions of the Companies Act, 1956, the Income-tax Act, 1961 and the Constitution of India?

Click here to read more in the Hindu News

The ICAI ’s counsel Mr N.K. Poddar submitted that the requirement ‘true and fair’ view overrides all other statutory requirements as to the matters to be included in the corporate accounts. “In order to give a ‘true and fair view’ it is not necessary to provide information, additional to the one needed to comply with all other statutory requirements,” he emphasised.

All the Accountants will agree with this view and stresses the fact the statutory auditor has to apply his professional judgment to form an opinion on whether the final accounts of the company gives a true and fair view of the state of affairs of the company.

Relevant Articles
  1. The FRC confirms that 'True and Fair' remains a cornerstone of Financial Reporting in the UK - Read the pdf document also
  2. Concept paper on True and Fair view

Santosh Puthran

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