Reported average effective tax rate
Measurement answer
What this metric measures
The reporting organization’s source-reported average effective tax rate for a declared period and accounting-profit scope, preserved with the tax expense or income, applicable-rate context and accounting basis used by the source.
Specification
Metric specification
- Result format
- Multi-field profile
- Unit
- Reported average effective tax rate (%)
- Reporting basis
- Financial reporting period
- Aggregation
- Rates are non-additive and are not averaged across entities, segments, jurisdictions or periods; a group rate is used only when the source reports it.
- Pillar
- Governance
- Topic
- Economic value, tax and public finance
- Controlled domain
- Tax and economic value
- Entity type
- Metric
Reporting boundary
Current tax, deferred tax, total tax expense or income, cash tax paid and accrued tax remain separate. The rate is not recomputed when the source omits compatible numerator or denominator components.
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
- Reported average effective tax rate (%)
- Reporting basis
- Financial reporting period
Unit meaning: A signed source-reported percentage retaining its accounting-profit denominator, tax-expense-or-income numerator scope, applicable-rate context and rounding basis.
Table fields and units
- reporting entity
- consolidation or segment boundary
- reporting period
- accounting standard and statement location
- tax expense or income scope
- Reported value
- Reported average effective tax rate (%)
- Measurement-source edition
- Assurance status
Published dimensions
- Reporting entity.
- Consolidation or segment boundary.
- Reporting period.
- Accounting standard and statement location.
- Tax expense or income scope.
- Accounting-profit scope.
- Currency and scale for supporting amounts.
- Applicable tax rate and basis.
- Source-reported rate.
- Sign convention.
- Restatement status.
- Rounding precision.
Calculation method
Formula information
- Status
- Specified
- Formula type
- Percentage
Formula
effective_tax_rate_percent = (income_tax_expense ÷ accounting_profit) × 100Apply this formula only with the metric's declared population, reporting period, units, denominator, and method-edition controls.
Variables
| Symbol | Variable | Definition | Unit |
|---|---|---|---|
income_tax_expense | income tax expense | Input defined by the reporting boundary for Reported average effective tax rate. | [ISO currency] at a stated scale |
accounting_profit | accounting profit | Input defined by the reporting boundary for Reported average effective tax rate. | [ISO currency] at a stated scale |
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 Reported average effective tax rate.
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.
- Tax expense or income scope.
- Accounting-profit scope.
- Currency and scale for supporting amounts.
- Applicable tax rate and basis.
- Retain the exact measurement-source edition with every observation.
- A signed source-reported percentage retaining its accounting-profit denominator, tax-expense-or-income numerator scope, applicable-rate context and rounding basis.
Record-specific limitations
- The rate can be undefined at zero accounting profit.
- Comparability changes with accounting standards, profit scope, losses, tax mix and applicable-rate basis.
- It is not cash tax divided by revenue, a statutory rate, marginal rate or tax-compliance measure.
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.