Include income tax in one note

To include income tax in one note:

  • Click the  Report options cog
  • Search for Include income tax in one note
  • Set to On
  • All sections will be in the Income tax note

The following notes will turn off (they can be turned back on via Sections > Notes):

  • Income tax refund due
  • Deferred tax asset
  • Provision for income tax
  • Deferred tax liability

It is suggested to use this option when flipping between a net deferred tax asset and liability between the current and comparative periods.

Deferred tax

To change 'Deferred tax - origination and reversal of temporary differences':

  • Click the  Report options cog
  • Search for Income tax - link from deferred tax
  • Select the required option 

The following options are available:

  • Yes - With breakdown by asset/liability: this will disclose both the calculated 'Deferred tax - origination and reversal of temporary differences' row and a breakdown by deferred tax asset and deferred tax liability
  • Yes - Total only: this will disclose only the calculated 'Deferred tax - origination and reversal of temporary differences' row
  • No - With breakdown by asset/liability: this will disclose both the manual 'Deferred tax - origination and reversal of temporary differences' row and a breakdown by deferred tax asset and deferred tax liability
  • No - Total only: this will disclose only the manual 'Deferred tax - origination and reversal of temporary differences' row

Statutory tax rate

To change the statutory tax rate:

  • Click the  Report options cog
  • Search for Current period statutory tax and/or Prior period statutory tax
  • Type the tax rates
  • It is also possible to click the settings icons to the right of the table

To manually input tax and make the text for the row editable:

  • Click the settings icons to the right of the row
  • Set Tax on profit or loss - calculated to No

Pillar Two model rules

For multinational groups that are within the scope of the OECD Pillar Two model rules, reporting requirements differ based on the status of legislation in each country. An overview of the Pillar Two disclosure requirements across each major Accurri reporting jurisdiction is shown below. 

Australia

  • The Australian Pillar Two Global and Domestic Minimum Tax (GDMT) laws are effective for financial years commencing on or after 1 January 2024.

  • AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules amended AASB 112 Income Taxes to provide temporary relief from accounting for deferred taxes arising from the Pillar Two model rules.

  • AASB 2023-4 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules: Tier 2 amended AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities to provide temporary relief from accounting for deferred taxes arising from the Pillar Two model rules.

  • Both AASB 2023-2 and AASB 2023-4 introduced targeted disclosure requirements to help financial statement users better understand an entity’s exposure to income taxes arising from the OECD reforms.

  • Refer to AASB112(88A), AASB112(88B) and AASB112(88C) for further detail regarding the required disclosures.

New Zealand

  • The New Zealand Pillar Two global anti-base erosion (GloBE) rules apply for fiscal years beginning on or after 1 January 2025.

  • The amending standard International Tax Reform – Pillar Two Model Rules (amendments to NZ IAS 12) is effective for accounting periods commencing on or after 1 January 2023.

  • The standard provides a temporary exemption from accounting for deferred taxes arising from the Pillar Two model rules and introduced disclosure requirements relating to an entity’s exposure to income taxes arising from the Pillar Two model rules .

  • Refer to NZIAS12(88A), NZIAS12(88B), NZIAS12(88C) for further detail regarding the required disclosures.

United Kingdom

  • The United Kingdom Multinational Top-up Tax and Domestic Top-up Tax Pillar Two rules applies to large multinational enterprises for accounting periods beginning on or after 31 December 2023.

  • Amendments to FRS 102 provide a temporary exemption from accounting for deferred taxes arising from the Pillar Two model rules and introduced targeted disclosure requirements relating to an entity’s exposure to income taxes arising from the Pillar Two model rules.

  • Amendments to FRS 101 provide an exemption from some of the disclosure requirements in IAS 12 Income Taxes, provided that equivalent disclosures are included in the consolidated financial statements of the group in which the entity is consolidated.

  • Refer to FRS102(29.28) and FRS102(29.29) for further detail regarding the required FRS 102 disclosures.

  • Refer to FRS101(8(iZA)) for further detail regarding the disclosure exemptions.

Ireland

  • The Ireland Pillar Two rules apply to in-scope entities for accounting periods commencing on or after 31 December 2023.

  • Amendments to FRS 102 provide a temporary exemption from accounting for deferred taxes arising from the Pillar Two model rules and introduced targeted disclosure requirements relating to an entity’s exposure to income taxes arising from the Pillar Two model rules.

  • Amendments to FRS 101 provide an exemption from some of the disclosure requirements in IAS 12 Income Taxes, provided that equivalent disclosures are included in the consolidated financial statements of the group in which the entity is consolidated.

  • Refer to FRS102(29.28) and FRS102(29.29) for further detail regarding the required FRS 102 disclosures.

  • Refer to FRS101(8(iZA)) for further detail regarding the disclosure exemptions.

IFRS

  • The IASB issued International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) on 23 May 2023 with immediate effect.

  • The amendments provide an exemption to the requirements in IAS 12 regarding disclosing information about deferred tax assets and liabilities related to the OECD Pillar Two income taxes. An entity has to disclose that it has applied the exception.

  • The amendments also include a requirement for entities to disclose separately current tax expense (income) related to Pillar Two income taxes and to disclose known or reasonably estimable information that helps users of financial statements understand the entity’s exposure to Pillar Two income taxes.

  • Refer to IAS12(88A), IAS12(88B) and IAS12(88C) for further detail regarding the required disclosures.