Tax Reconciliation Note

Question 0

What are the line items in the tax reconciliation note?

Answer 0

Profit before tax
Tax at x%
Non-deductible expenses
Non-taxable incomes
Tax rate changes
Unrecognized tax loss
Under/over provisions
Foreign tax expenses
Capital gains tax

Question 1

Mnemonic for tax recon note?

Answer 1

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Question 2

How is the tax rate change calculated?

Answer 2

Calculate the balance of deferred tax from the pervious year and then divide that amount by last year’s tax rate and multiply it by current year’s tax rate