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CMA Intermediate · Financial Accounting · Introduction to Accounting Standards (GAAP, AS and Convergence to Ind AS)

For a Level IV non-company entity, the applicability table in the Appendix states for AS 22 Accounting for Taxes on Income:

For the last category of non-company entities, AS 22 applies only for current tax related provisions. It is not exempt altogether and not applicable in full, which is the position for the other two categories shown.

  1. AApplicable in full as for companies
  2. BNot applicable
  3. CApplicable only for current tax related provisionsCorrect
  4. DApplicable with disclosures exemption

Explanation

The table shows AS 22 as Applicable for the first two columns and 'Applicable only for current tax related provisions' for the third column, which is the least stringent category of non-company entities. Full applicability applies to the others, and exemption of disclosures is shown for AS 26, not AS 22.

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