Tax Management India. Com
                            Law and Practice: A Digital eBook ...
TMI - Tax Management India. Com
Case Laws Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Manuals SMS News Articles Highlights
        Home        
 
TMI Short Notes
Home TMI Short Notes Income Tax This
← Previous Next →

ICDS-I provides that an accounting policy shall not be changed without ’reasonable cause’. The term ’reasonable cause’ is not defined. What shall constitute ’reasonable cause’.

  • Contents
  • Plus+

Dated: 8-9-2017

Manual - ICDS I : Accounting Policies

Under the Act, ’reasonable cause is an existing concept and has evolved well over a period of time conferring desired flexibility to the tax payer in deserving cases. The expression “reasonable cause” has not been defined and would have to be examined on a case to case basis.

Any change in accounting policy should be adjudged as ‘reasonable’ if it satisfies the criterion of AS 5. As per AS 5, a change in an accounting policy should be made only if the adoption of a different accounting policy is required by statute or for compliance with an accounting standard or if it is considered that the change would result in a more appropriate presentation of the financial statements of the enterprise.

 

 
 
 
← Previous Next →
 
Discussion Forum
what is new what is new
 


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.