As per accounting standard AS3 provision for taxation should be treated as ........

General Accounting Principles Fund flow statement

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As per accounting standard AS3, provision for taxation should be treated as

As a current liability

As an appropriation of profits

Either a or b

None of the above

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Explanation:

Treated as an appropriation profit:

As per accounting standard AS3,, the amount of tax which should be provided out of profit, is to be debited to Profit and Loss Account, whereas the actual amount of tax which is to be paid is to be shown as an application in the ‘Statement of Sources and Applications of Funds’.