Tax calculation and disclosure example

This item includes a worked example of income tax disclosures prepared in accordance with NZ IAS 12.

The spreadsheet used for this example (see link below) includes a summary of the movements in the tax accounts, the tax-related journal entries, the current tax calculation, the deferred tax calculation, and a summary of the tax and accounting fixed asset registers.

Tax calculations TMCL 2024

This example is based on a profitable operating company with revalued assets. It shows the calculation of deferred tax on revaluation gains and the accounting treatment of tax loss transfers. It also includes an adjustment for deferred tax on buildings.

The tax note included in the spreadsheet is based on the disclosures required for entities reporting under Tier 1. Disclosure of the balance of imputation credits is not required under Tier 2 (Reduced Disclosure Regime).

For further information about deferred tax and tax loss transfers, please refer to the following items on our website:

This document is intended only as a general guide, and should not be used or relied upon as a substitute for specific professional advice. No liability is accepted for loss or damage incurred by persons who rely on this document.

Page last updated: 8 May 2024