Interim reporting is made in between the fiscal year. It is made before the completion of fiscal year in mostly public corporation for taking various decisions for the remaining period. Mostly quarterly and half yearly report is prepared. Deferred tax asset and liability arises due to timing difference special when taxes are paid in advance. When there is overpayment of advance tax then deferred tax asset arises while opposite to it when there is underpayment of advance tax then deferred tax liability arises. To choose: The correct answer.

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Chapter 13, Problem 13.6.6E

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Introduction: Interim reporting is made in between the fiscal year. It is made before the completion of fiscal year in mostly public corporation for taking various decisions for the remaining period. Mostly quarterly and half yearly report is prepared.Deferred tax asset and liability arises due to timing difference special when taxes are paid in advance. When there is overpayment of advance tax then deferred tax asset arises while opposite to it when there is underpayment of advance tax then deferred tax liability arises.

To choose: The correct answer.

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