Average effective tax rate reconciliation
Measurement answer
What this metric measures
A source-reported percentage-point bridge between an applicable tax rate and the reported average effective tax rate for the same organization, period and accounting-profit scope.
Specification
Metric specification
- Result format
- Structured table
- Unit
- Rate endpoints (%) and reconciliation movements (percentage points)
- Reporting basis
- Financial reporting period
- Aggregation
- Do not sum bridges across periods, entities, segments or jurisdictions and do not average their endpoints.
- Pillar
- Governance
- Topic
- Economic value, tax and public finance
- Controlled domain
- Tax and economic value
- Entity type
- Metric
Reporting boundary
The ordered bridge preserves applicable-rate start, signed adjustment lines, effective-rate endpoint, source order, labels, weighting basis and rounding residual.
Verified source occurrences
Framework coverage
This is one canonical metric. The bindings below show every verified framework occurrence without creating duplicate metric pages. Edition, disclosure, role, and relationship remain source-specific.
- Measurement AuthoritySource evidence
IFRS Accounting Standards
- Publisher
- IFRS Foundation
- Edition
- Official 2021 issued-text snapshot; current operative edition requires reverification
- Requirement
- Not Specified
- Relationship
- Defines Measurement
- Mapping outcome
- Direct Evidence
- Source locator
- Paragraph 81(c) and reconciliation forms PDF p32; paragraphs 84-86 pp34-35
Value structure
Dimensions and units
- Unit
- Rate endpoints (%) and reconciliation movements (percentage points)
- Reporting basis
- Financial reporting period
Unit meaning: Start and endpoint rows are signed percentages, while adjustment rows are signed percentage-point movements; percentage points are never described as percent change.
Table fields and units
- reporting entity
- consolidation or segment boundary
- reporting period
- accounting standard and statement location
- applicable tax rate and basis
- Reported value
- Rate endpoints (%) and reconciliation movements (percentage points)
- Measurement-source edition
- Assurance status
Published dimensions
- Reporting entity.
- Consolidation or segment boundary.
- Reporting period.
- Accounting standard and statement location.
- Applicable tax rate and basis.
- Line label and normalized class.
- Sign.
- Endpoint.
- Rounding precision.
- Source-reported residual.
Calculation method
Formula information
- Status
- Specified
- Formula type
- Sum
Formula
reconciled_effective_tax_rate = starting_applicable_tax_rate + Σ(signed_percentage_point_adjustmentᵢ)Apply this formula only with the metric's declared population, reporting period, units, denominator, and method-edition controls.
Variables
| Symbol | Variable | Definition | Unit |
|---|---|---|---|
starting_applicable_tax_rate | starting applicable tax rate | Input defined by the reporting boundary for Average effective tax rate reconciliation. | % |
signed_percentage_point_adjustment | signed percentage point adjustment | Input defined by the reporting boundary for Average effective tax rate reconciliation. | percentage points |
Verified sources
Evidence and status sources
Sustopedia checked each record-specific claim directly against primary publisher material. Labels distinguish current measurement authority from future compatibility and corroborative, legal, edition, or method status context. Corroborative evidence can support a stated limitation but cannot establish the core measurement by itself.
Measurement evidence
- Measurement evidenceChecked 15 August 2026
IAS 12 Income Taxes, 2021 issued-text snapshot
- Publisher
- IFRS Foundation
- Edition
- Official 2021 issued-text snapshot; current operative edition requires reverification
- Locator
- Paragraph 81(c) and reconciliation forms PDF p32; paragraphs 84-86 pp34-35
Supports: Supports the measurement definition, boundary, and source-reported fields for Average effective tax rate reconciliation.
Open official source
Use with context
Interpretation boundaries
Method disclosures required
Source-edition basis: IAS 12 Income Taxes, 2021 issued-text snapshot — Official 2021 issued-text snapshot; current operative edition requires reverification. Retain the exact source edition on every observation; later editions require a separate method profile.
- Reporting entity.
- Consolidation or segment boundary.
- Reporting period.
- Accounting standard and statement location.
- Applicable tax rate and basis.
- Line label and normalized class.
- Sign.
- Endpoint.
- Retain the exact measurement-source edition with every observation.
- Start and endpoint rows are signed percentages, while adjustment rows are signed percentage-point movements; percentage points are never described as percent change.
Record-specific limitations
- The bridge can be negative or exceed 100 percent.
- It can be undefined where accounting profit is zero.
- Source adjustment classes and applicable rates vary.
- It does not evidence cash taxes paid or tax compliance.
Interpret this metric with the stated reporting boundary, period convention, value shape, and unit. Results prepared with different boundaries or conventions may not be directly comparable.
Measurement evidence supports the core record-specific claims described above. Corroborative evidence can support limitations, while compatibility and status sources provide their separately labelled context. None of these cards by itself determines an organisation's legal applicability, filing readiness, assurance status, or compliance conclusion.