Notwithstanding anything stated above, the standard has certainly helped to re-state the profits of an
enterprise based on the sustainable tax savings. Tax on income being one of the significant items in
the profit and loss account of a company, it is considered as an expense for earning income and
accrues in the same period as the income to which it relates. The standard undoubtedly meets this
objective by ironing out the tax effects of temporary timing differences between accounting income
and taxable income, thereby presenting the real income to the investors, shareholders and other
stake-holders in the company. In an era of emphasis on good corporate governance, the standard has
served the purpose to come down heavily on window dressing practices being adopted by companies
prior to its introduction. Though the standard has been the subject matter of debate since its
introduction, following the verdict delivered by the Apex Court of India on the issue it can now
reasonably be construed that so far it relates to the objective and elementary principles underlying
the standard, the dust would finally settle in India■