Companies exempted from the applicability of AS-22 and AS-12-MCA Notification

Companies exempted from the applicability  of AS-22 and AS-12-MCA Notification

MCA Vide Notification No. S.O. 529(E) dated 5th February, 2018, had directed that with effect from the 1st April, 2017, the provisions of Accounting Standard 22 or Indian Accounting Standard 12 relating to deferred tax asset or deferred tax liability shall not apply, for seven years to a Government company which:—

(a) is a public financial institution under sub-clause (iv) of clause (72) of section 2 of the Companies Act, 2013;

(b) is a Non-Banking Financial Company registered with the Reserve Bank of India under section 45-IA of the Reserve bank of India Act, 1934; and

(c) is engaged in the business of infrastructure finance leasing with not less than seventy five per cent. of its total revenue being generated from such business with Government companies or other entities owned or controlled by Government 

Now by the Notification No. S.O. 1465(E) dated 2nd April, 2018, the MCA has amended the earlier notification by deleting the words “for seven years” . In result, such companies have been throughout exempted from the applicability  of AS-22 and AS-12.