Difference in ICAI and Income Tax Standards :provisions, contingent liabilities and contingent assets

The CBDT has now notified the Income Disclosure and Tax Accounting Standards vide notification no. 32/2015, F. No. 134/48/2010-TPL, dated March 31, 2015. Comparative study of Accounting Standard issued by ICAI, and notified TAS has been given hereunder

 Income Computation and Disclosure Standard X relating to provisions, contingent liabilities and contingent assets

This Income Computation and Disclosure Standard is applicable for computation of income chargeable under the head “Profits and gains of business or profession” or “Income from other sources” and not for the purpose of maintenance of books of accounts. In the case of conflict between the provisions of the Income-tax Act, 1961 (‘the Act’) and this Income Computation and Disclosure Standard, the provisions of the Act shall prevail to that extent

Accounting Standards issued by ICAI	Income Computation and Disclosure Standards (ICDS)
A. Scope
AS-29 provides for recognition of a contingent asset when the realization of related income is virtually certain.	This ICDS replaces the condition of "virtually certain" with "reasonably certain" for recognition of income and the related asset. [Para 5]
B. Transitional Provisions
	All the provisions or assets and related income shall be recognised for the previous year commencing on or after 01-04-2015 in accordance with the provisions of this standard after taking into account the amount recognised, if any, for the same for any previous year ending on or before 31-03-2015. [Para 20]