Tax in Equity/Reserves (IFRS)

Tax in Equity/Reserves is a supplemental schedule used to calculate income tax on equity related gains/losses including AFS securities, and cash flow hedges. This schedule is not connected to the current tax provision but is connected to the temporary differences and deferred tax calculations.

The gain/loss on these items can be automated from the trial balance using the Tax Automation process, similar to NIBT in the Current Provision. The sample system provide equity adjustments in various categories; however, additional categories can be added.

Each type of equity reserve has a system-calculated value and adjustment value. The system-calculated members (EquitySysNPAFS / EquitySysNPCFH / EquitySysNPSBP/ EquitySysNPOther ) are enabled for Tax Automation so the data can be pulled into the RollForward members using the Tax Automation process.