CA Ahmad Faraz*
CA Ahmad Faraz Jahangir has examined the amended provisions of MAT under 115JB of Income Tax Act, 1961, as applicable to Companies following Ind AS for preparation of their Financial Statements. Illustrations have been given for a better clarity on practical application the provisions.
Introduction:
The Finance Act 2017 amended section 115JB of Income Tax Act, 1961 to rationalise the calculation of Book Profits for Companies that prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015 (hereinafter referred to as “Ind AS Compliant Companies”). Further, CBDT vide Circular No. 24/2017 dated 25/07/2017 [F. No 133/23/2015-TPL] issued a FAQ titled Clarifications on computation of book profit for the purposes of levy of Minimum Alternate Tax (MAT) under section 115JB of the Income-tax Act, 1961 for Indian Accounting Standards (Ind AS) compliant companies where it answered 14 questions.
Provisions from Bare Act:
Sub section 2A, 2B and 2C of section 115JB highlight the extra exercise to be undertaken by an Ind AS Compliant Company while calculating its book profits for the purpose of MAT. These provisions have been reproduced below –
(2A) For a company whose financial statements are drawn up in compliance to the Indian Accounting Standards specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015, the book profit as computed in accordance with Explanation 1 to sub-section (2) shall be further—
a) increased by all amounts credited to other comprehensive income in the statement of profit and loss under the head “Items that will not be re-classified to profit or loss”;
b) decreased by all amounts debited to other comprehensive income in the statement of profit and loss under the head “Items that will not be re-classified to profit or loss”;
c) increased by amounts or aggregate of the amounts debited to the statement of profit and loss on distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Indian Accounting Standards 10;
d) decreased by all amounts or aggregate of the amounts credited to the statement of profit and loss on distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Indian Accounting Standards 10:
Provided that nothing contained in clause (a) or clause (b) shall apply to the amount credited or debited to other comprehensive income under the head “Items that will not be re-classified to profit or loss” in respect of—
i. revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian Accounting Standards 38; or
ii. gains or losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with the Indian Accounting Standards 109:
Provided further that the book profit of the previous year in which the asset or investment referred to in the first proviso is retired, disposed, realised or otherwise transferred shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the first proviso for the previous year or any of the preceding previous years and relatable to such asset or investment.
(2B) In the case of a resulting company, where the property and the liabilities of the undertaking or undertakings being received by it are recorded at values different from values appearing in the books of account of the demerged company immediately before the demerger, any change in such value shall be ignored for the purpose of computation of book profit of the resulting company under this section.
(2C) For a company referred to in sub-section (2A), the book profit of the year of convergence and each of the following four previous years, shall be further increased or decreased, as the case may be, by one-fifth of the transition amount:
Provided that the book profit of the previous year in which the asset or investment referred to in sub-clauses (B) to (E) of clause (iii) of the Explanation is retired, disposed, realised or otherwise transferred, shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-clauses relatable to such asset or investment:
Provided further that the book profit of the previous year in which the foreign operation referred to in sub-clause (F) of clause (iii) of the Explanation is disposed or otherwise transferred, shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-clause relatable to such foreign operations.
Explanation —For the purposes of this sub-section, the expression—
i. “year of convergence” means the previous year within which the convergence date falls;
ii. “convergence date” means the first day of the first Indian Accounting Standards reporting period as defined in the Indian Accounting Standards 101;
iii. “transition amount” means the amount or the aggregate of the amounts adjusted in the other equity (excluding capital reserve and securities premium reserve) on the convergence date but not including the following—
A. amount or aggregate of the amounts adjusted in the other comprehensive income on the convergence date which shall be subsequently re-classified to the profit or loss;
B. revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian Accounting Standards 38 adjusted on the convergence date;
C. gains or losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with the Indian Accounting Standards 109 adjusted on the convergence date;
D. adjustments relating to items of property, plant and equipment and intangible assets recorded at fair value as deemed cost in accordance with paragraphs D5 and D7 of the Indian Accounting Standards 101 on the convergence date;
E. adjustments relating to investments in subsidiaries, joint ventures and associates recorded at fair value as deemed cost in accordance with paragraph D15 of the Indian Accounting Standards 101 on the convergence date; and
F. adjustments relating to cumulative translation differences of a foreign operation in accordance with paragraph D13 of the Indian Accounting Standards 101 on the convergence date.
Format of Statement of Profit & Loss of Ind AS Compliant Companies:
To understand the computation of MAT for Ind AS Complaint Companies, one must know what a Statement of Profit & Loss of Ind AS Compliant Company looks like. The format has been taken from Division II of Schedule III to Companies Act 2013.
| Particulars | Note No. | Figures for the current reporting period | Figures for the previous reporting period | |
| I | Revenue From operations | |||
| II | Other Income | |||
| III | Total Income (I + II) | |||
| IV | EXPENSES
Cost of materials consumed |
|||
| Purchases of Stock-in-Trade | ||||
| Changes in inventories of finished goods, Stock-in -Trade and work-in-progress | ||||
| Employee benefits expense | ||||
| Finance costs | ||||
| Depreciation and amortization expenses | ||||
| Other expenses | ||||
| Total Expenses (IV) | ||||
| V | Profit/(loss) before exceptional items and tax (I – IV) | |||
| VI | Exceptional Items | |||
| VII | Profit/ (loss) before exceptions items and tax (V – VI) | |||
| VIII | Tax expense:
(1) Current tax (2) Deferred tax |
|||
| IX | Profit (Loss) for the period from continuing operations (VII-VIII) | |||
| X | Profit/(loss) from discontinued operations | |||
| XI | Tax expenses of discontinued operations | |||
| XII | Profit/(loss) from Discontinued operations (after tax) (X-XI) | |||
| XIII | Profit/(loss) for the period (IX+XII) | |||
| XIV | Other Comprehensive Income | |||
| A: (i) Items that will not be reclassified to profit or loss
(ii) Income tax relating to items that will not be reclassified to profit or loss B: (i) Items that will be reclassified to profit or loss (ii) Income tax relating to items that will be reclassified to profit or loss |
||||
| XV | Total Comprehensive Income for the period (XIII + XIV) (Comprising Profit (Loss) and Other Comprehensive Income for the period) | |||
| XVI | Earnings per equity share (for continuing operation):
(1) Basic (2) Diluted |
|||
| XVII | Earnings per equity share (for discontinued operation):
(1) Basic (2) Diluted |
|||
| XVIII | Earning per equity share (for discontinued & continuing operation)
(1) Basic (2) Diluted |
Other Comprehensive Income (OCI) shall be classified into –
(A) Items that will not be reclassified to profit or loss
i. Changes in revaluation surplus;
ii. Remeasurements of the defined benefit plans;
iii. Equity Instruments through Other Comprehensive Income;
iv. Fair value changes relating to own credit risk of financial liabilities designated at fair value through profit or loss;
v. Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent not to be classified into profit or loss; and
vi. Others (nature to be specified).
(B) Items that will be reclassified to profit or loss;
i. Exchange differences in translating the financial statements of a foreign operation;
ii. Debt instruments through Other Comprehensive Income;
iii. The effective portion of gains and loss on hedging instruments in a cash flow hedge;
iv. Share of other comprehensive lncome in Associates and Joint Ventures, to the extent to be classified into profit or loss; and
v. Others (nature to be specified)
Explanation of Provisions:
The starting point for computation of book profits shall be the Profit/Loss for the period [Item VIII of Statement of Profit & Loss] and not Total Comprehensive Income for the period [Item XV of Statement of Profit & Loss]. There was a lot of confusion regarding this since the provisions remain silent on this issue. This has now been clarified by CBDT via the FAQ released.
Explanation 1 to Section 115JB(2) states the adjustment to be made to book profits for all companies. Once these adjustments are made, extra adjustments are to be made to book profits of Ind AS Compliant Companies in accordance with sub-section 2A, 2B and 2C of section 115JB:
| Item No. | Particulars | Amount |
| I | Profit/(loss) for the period [Item VIII of Statement of Profit & Loss] | xxx |
| II | Adjustments under Explanation 1 to Section 115JB(2):
Add: Item (a) to (k) of Explanation 1 Less: Item (i) to (viii) of Explanation 1 |
xxx xxx |
| III | Book Profits before adjustment for Ind AS | xxx |
| IV | Adjustment for Ind AS in accordance with Section 115JB(2A): | |
| IV (a) | Add: Amounts credited to other comprehensive income in P&L under the head “Items that will not be reclassified to profit or loss” – Refer Note 1 | xxx |
| IV (b) | Less: Amounts debited to other comprehensive income in P&L under the head “Items that will not be reclassified to profit or loss” – Refer Note 1 | xxx |
| IV (c) | Add: Amounts debited to P&L on distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Ind AS-10 – Refer Note 2 | xxx |
| IV (d) | Less: Amounts credited to P&L on distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Ind AS-10 – Refer Note 2 | xxx |
| V | Adjustment for “Transition Amount” for Ind AS in accordance with Section 115JB(2C) – Refer Note 3 | xxx |
| Book Profits for Ind AS Compliant Company | xxx |
Note 1:
For MAT calculation, items of Other Comprehensive Income (OCI) under heading “Items that will not be reclassified to profit or loss” have only been considered since these are permanently recorded in reserves and will never be transferred to regular profit & loss.
Items under heading “Items that will be reclassified to profit or loss” will automatically be included for MAT calculation as and when they are reclassified as profit & loss in accordance with relevant Ind AS since they will not meet the condition of clause (i) of Explanation 1 of 115JB(2).
Treatment of Components of Other Comprehensive Income (OCI) for Book Profits
| Sr No | Component of OCI | Treatment for Book Profit |
| 1 | Changes in revaluation surplus of Property, Plant and Equipment & Intangibles. Refer para 41 of Ind AS 16 – Property, Plant and Equipment and para 87 of Ind AS 38 – Intangible Assets | Classified under “Items that will not be reclassified to profit or loss”. Hence included in book profits at the time of retirement/ realisation/disposal or otherwise transfer of asset [second proviso to 115JB(2A)]. |
| 2 | Remeasurements of defined benefit plans as mentioned in Ind AS 19 – Employee Benefits. | Classified under “Items that will not be reclassified to profit or loss” as per para 122 of Ind AS 19. Hence included in book profits every year at the time of remeasurement leading to actuarial gains or losses. |
| 3 | Gains and losses arising from translating the financial statements of a foreign operation as mentioned in Ind AS 21 – The Effects of Changes in Foreign Exchange Rates. | Classified under “Items that will be reclassified to profit or loss” as per para 48 of Ind AS 21, hence outside purview of 115JB(2A). |
| 4 | Gains and losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with paragraph 5.7.5 of Ind AS 109 – Financial Instruments | Classified under “Items that will not be reclassified to profit or loss” as per para B5.7.1 of Ind AS 109. Hence included in book profits at the time of retirement/ realisation/disposal or otherwise transfer of asset [second proviso to 115JB(2A)]. |
| 5 | Gains and losses on financial assets measured at fair value through other comprehensive income in accordance with paragraph 4.1.2A of Ind AS 109 – Financial Instruments | Classified under “Items that will be reclassified to profit or loss” as per para 5.6.7 of Ind AS 109, hence outside purview of 115JB(2A). |
| 6 | The effective portion of gains and losses on hedging instruments in a cash flow hedge and the gains and losses on hedging instruments that hedge investments in equity instruments measured at fair value through other comprehensive income in accordance with paragraph 5.7.5 of Ind AS 109 – Financial Instruments | Classified under “Items that will not be reclassified to profit or loss” as per para 96 of Ind AS 1, hence included in book profits every year as and when the gain or loss arises. |
| 7 | For particular liabilities designated as at fair value through profit or loss, the amount of the change in fair value that is attributable to changes in the liability’s credit risk (see paragraph 5.7.7 of Ind AS 109) | Classified under “Items that will not be reclassified to profit or loss” as per para B5.7.9 of Ind AS 109. Hence included in book profits Every year as and when the gain or loss arises. |
| 8 | Changes in the value of the time value of options when separating the intrinsic value and time value of an option contract and designating as the hedging instrument only the changes in the intrinsic value (see Chapter 6 of Ind AS 109 – Financial Instruments) | Classified under “Items that will not be reclassified to profit or loss” as per para 96 of Ind AS 1, hence included in book profits every year as and when the gain or loss arises. |
| 9 | Changes in the value of the forward elements of forward contracts when separating the forward element and spot element of a forward contract and designating as the hedging instrument only the changes in the spot element, and changes in the value of the foreign currency basis spread of a financial instrument when excluding it from the designation of that financial instrument as the hedging instrument (see Chapter 6 of Ind AS 109 – Financial Instruments) | Classified under “Items that will not be reclassified to profit or loss” as per para 96 of Ind AS 1, hence included in book profits every year as and when the gain or loss arises. |
| 10 | Share of Other Comprehensive Income in Associates and Joint Ventures, to the extent not to be classified into profit or loss | Included in book profits every year as and when share in gain or loss arises. |
Note 2:
Clause (c) and (d) of section 115(2A) and section 115(2B) have to be read in conjunction to understand the calculation of MAT in a scheme of demerger of companies that are following Ind AS. Para 11 of Appendix A to Ind AS 10 provides that any distributions of non-cash assets to shareholders (for example, in case of a demerger) shall be accounted for at fair value of the assets. As per para 14, difference between the carrying amount of the assets in books and the fair value of the assets to be distributed, is recorded in the profit and loss account. Correspondingly, the reserves are debited at fair value to record the distribution as a ‘deemed dividend’ to the shareholders. As there is a corresponding adjustment in retained earnings, this difference arising on demerger shall be excluded from the book profits.
As per 115(2B), in the case of a resulting company, where the property and the liabilities of the undertaking or undertakings being received by it are recorded at values different from values appearing in the books of account of the demerged company immediately before the demerger, any change in such value shall be ignored for the purpose of computing of book profit of the resulting company.
Example: Company X Ltd. is undergoing a scheme of demerge. As per the scheme, X Ltd. will transfer Assets to resultant co. R Ltd. The carrying value of assets is Rs. 500 while the fair value is Rs. 800. Book profit is assumed to be 2000 before adjustment of 115(2A).
X Ltd. will pass the following journal entries:
| 1. Asset a/c dr. | 300 |
| To Fair value markup | 300 |
| (Being asset marked up to its fair value as per para 14) | |
| 2. Profit & Loss Appropriation a/c dr. | 800 |
| To Proposed Dividend | 800 |
| (Being dividend proposed at fair value of asset as per para 11) | |
Calculation of MAT:
| Book profit before adjustment of 115(2A) | 2000 |
| Add: Proposed dividend [clause e to Explanation 1 of 115JB(2)] | 800 |
| Less: Amounts credited to P&L on distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Ind AS-10 | 300 |
| Book Profit | 2500 |
300 being a notional mark-up is allowed to be reduced from calculation of book profits. Hence, dividend is effective included at book value of asset distributed (800 – 300).
As per 115(2B), in the books of Resultant Co. R ltd., this notional gain of 300 will be ignored for calculation of book profits.
Note 3:
When a Company adopts Ind AS for the first time, it is required to recognise, reclassify and measure all its existing assets and liabilities as required by Ind AS. Effect of such recognition, reclassification and measurement is adjusted in Other Equity.
Transition amount includes all such amount (except amounts in capital reserve and security premium reserve). The transition amount is to be adjusted in book profits (add to book profit is credit balance, reduce from book profit if debit balance) equally over a period of 5 years. However, items 1 – 6 given below are to be excluded from transition amount and they have a specific treatment:
| Sr No | Items | Treatment for Book Profit |
| 1 | Amount or aggregate of the amounts adjusted in the other comprehensive income on the convergence date which shall be subsequently re-classified to the profit or loss. | On the principle that such items will be included in book profit as and when they are reclassified from OCI to profit or loss, these are ignored for the purpose of treatment of “Transition Amount” as per 115JB(2C). |
| 2 | Revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian Accounting Standards 38 adjusted on the convergence date. | Included in book profit at the time of retirement/ realisation/disposal or other transfer of asset [Proviso to 115JB(2C)].
Note: Provision of 1/5th is not applicable here. |
| 3 | Gains or losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with the Indian Accounting Standards 109 adjusted on the convergence date. | Included in book profit at the time of retirement/ realisation/disposal or other transfer of asset [Proviso to 115JB(2C)].
Note: Provision of 1/5th is not applicable here. |
| 4 | Adjustments relating to items of property, plant and equipment and intangible assets recorded at fair value as deemed cost in accordance with paragraphs D5 and D7 of the Indian Accounting Standards 101 on the convergence date | Included in book profit at the time of retirement/ realisation/disposal or other transfer of asset [Proviso to 115JB(2C)].
Note: Provision of 1/5th is not applicable here. |
| 5 | Adjustments relating to investments in subsidiaries, joint ventures and associates recorded at fair value as deemed cost in accordance with paragraph D15 of the Indian Accounting Standards 101 on the convergence date | Included in book profit at the time of retirement/ realisation/disposal or other transfer of asset [Proviso to 115JB(2C)].
Note: Provision of 1/5th is not applicable here. |
| 6 | Adjustments relating to cumulative translation differences of a foreign operation in accordance with paragraph D13 of the Indian Accounting Standards 101 on the convergence date | Included in book profit when foreign operation is disposed or other transferred [Second proviso to 115JB(2C)].
Note: Provision of 1/5th is not applicable here. |
For companies which have adopted Ind AS from Financial Year 2016-17, the relevant Assessment Years for adjustment of Transition Amount in Book Profits under 115JB(2C) in 5 equal instalments will be:
- A. Y. 2017-18
- A. Y. 2018-19
- A. Y. 2019-20
- A. Y. 2020-21
- A. Y. 2021-22
Illustration:
Solution to Question from CA-Final Direct Tax Compulsory Question – Nov 2018:
Solution:
Kindly note that ICAI has not released the answer to this question.
Update: ICAI has released the answer but missed out one adjustment (working note 1)
Calculation of Book Profits in accordance with Section 115JB
| Particulars | Working Note | Amount (in Lakh) |
| Book profits u/s 115JB(2) | 52.26 | |
| Less: Adjustment under clause (iih) to Explanation 1 | 1 | 7.1 |
| Adjustments u/s 115JB(2A), (2B), (2C) | ||
| 1. OCI that may be re-classified into Profit & Loss | 2 | 0 |
| 2. OCI that will not be re-classified into Profit & Loss | ||
|
3 | 0 |
|
4 | 7.25 |
|
4 | (4.1) |
|
4 | 3.2 |
|
4 | 4.45 |
|
3 | 0 |
| 3. Adjustment for “Transition Amount” u/s 115JB(2C) | 5 | 8 |
| Book Profits | 63.96 | |
| Tax @ 18.5% | 11.8326 | |
| Add: Surcharge 0% (Since income less than 1 Crore) | 0 | |
| Add: Cess 4% | 0.4733 | |
| Tax Payable under MAT (A) | 12.306 | |
| Tax Payable under Normal Provisions (B) | 9.20 | |
| MAT Credit (A – B) To be carried forward for 15 AY (amendment) | 3.106 |
Working Notes:
1. Clause (iih) as introduced by Finance Act, 2018.
Book profit shall be reduced by the aggregate amount of unabsorbed depreciation and loss brought forward in case of a company against whom an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code, 2016
| Assessment Years | Business Loss | Depreciation |
| A.Y 2015-16 (F.Y 2014-15) | 4.6 | 4.9 |
| A.Y 2016-17 (F.Y 2015-16) | 1.75 | 2.2 |
| Total Available for set off | 6.35 | 7.1 |
| Set off A.Y 2016-17 | 4.6 | 0 |
| Set off A.Y 2017-18 | 1.75 | 0 |
| Amount remaining for A.Y 2018-19 | 0 | 7.1 |
Aggregate of unabsorbed depreciation and business loss = 0 + 7.1 = 7.1
2. 115JB(2A) talks only about items of Other Comprehensive Income (OCI) under heading “Items that will not be reclassified to profit or loss”. Items under heading “Items that will be reclassified to profit or loss” are ignored. Hence no adjustments.
3. “Changes in fair value of equity instruments” and “Revaluation surplus for assets” are to be included in book profits only onretirement/ realisation/disposal or otherwise transfer of asset. Since the question is silent, it is assumed that assets have not been retired, realised, disposed or transferred. Refer second proviso to 115JB(2A) given below.
Provided further that the book profit of the previous year in which the asset or investment referred to in the first proviso is retired, disposed, realised or otherwise transferred shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the first proviso for the previous year or any of the preceding previous years and relatable to such asset or investment.
Assets referred in first proviso:
i. revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian Accounting Standards 38.
ii. gains or losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with the Indian Accounting Standards 109
4. All other items of OCI under heading “Items that will not be reclassified to profit or loss” will be included in book profits. Refer 115JB(2A) given below:
(2A) For a company whose financial statements are drawn up in compliance to the Indian Accounting Standards specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015, the book profit as computed in accordance with Explanation 1 to sub-section (2) shall be further—
a) increased by all amounts credited to other comprehensive income in the statement of profit and loss under the head “Items that will not be re-classified to profit or loss”
b) decreased by all amounts debited to other comprehensive income in the statement of profit and loss under the head “Items that will not be re-classified to profit or loss”
5. Computation of Transition Amount under Clause (iii) of Explanation to Section 115JB(2C)
| Credit balance Transition Amount as given | 52.50 |
| Less: Capital Reserve balance included in above | 8 |
| Less: Transition difference in a foreign operation ** | 4.50 |
| Total | 40 |
| One fifth of above (40/5) | 8 |
** In the absence of information, it is assumed that foreign operation is not disposed-off.
(2C) For a company referred to in sub-section (2A), the book profit of the year of convergence and each of the following four previous years, shall be further increased or decreased, as the case may be, by one-fifth of the transition amount:
Provided that the book profit of the previous year in which the asset or investment referred to in sub-clauses (B) to (E) of clause (iii) of the Explanation is retired, disposed, realised or otherwise transferred, shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-clauses relatable to such asset or investment:
Provided further that the book profit of the previous year in which the foreign operation referred to in sub-clause (F) of clause (iii) of the Explanation is disposed or otherwise transferred, shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-clause relatable to such foreign operations.
Explanation —For the purposes of this sub-section, the expression—
(iii) “transition amount” means the amount or the aggregate of the amounts adjusted in the other equity (excluding capital reserve and securities premium reserve) on the convergence date but not including the following—
A. amount or aggregate of the amounts adjusted in the other comprehensive income on the convergence date which shall be subsequently re-classified to the profit or loss;
B. revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian Accounting Standards 38 adjusted on the convergence date;
C. gains or losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with the Indian Accounting Standards 109 adjusted on the convergence date;
D. adjustments relating to items of property, plant and equipment and intangible assets recorded at fair value as deemed cost in accordance with paragraphs D5 and D7 of the Indian Accounting Standards 101 on the convergence date;
E. adjustments relating to investments in subsidiaries, joint ventures and associates recorded at fair value as deemed cost in accordance with paragraph D15 of the Indian Accounting Standards 101 on the convergence date; and
F. adjustments relating to cumulative translation differences of a foreign operation in accordance with paragraph D13 of the Indian Accounting Standards 101 on the convergence date.
Author can be reached at [email protected]
Author Bio
THE CALCULATIONS MADE IN NOT AS PER THE ICAI PUBLISHED ANSWER ,THE BROUGHT FORWARD LOSS AND UNABSORBED DEP BOTH CAN BE DEDUCTED BECAUSE IT IS ADMITTED TO NCLT
Proposed dividend is not charged to PL , rather deducted directly from reserves. Hence 800 distribution is not reqd to be added back as our starting point is PL.