Income tax and non-controlling interests effects

Learning objectives

• Calculate the effect of income tax and non-controlling interests for an item.L2
• Explain the simplified approach to the tax effect and how it is explained.L2, L3

Normative references

• IFRS 18 §123For each measure, labelled and described in a clear and understandable manner that does not mislead users, the entity discloses the aspect of performance communicated and why the measure is useful, how it is calculated, a reconciliation to the subtotal listed in para. 118 or the most directly comparable total or subtotal required by the Standards, the income tax effect and the effect on non-controlling interests of each reconciling item, and how the income tax effect was determined; under para. B141, that effect is calculated at the applicable statutory tax rate, on a reasonable pro rata allocation of current and deferred tax, or by another method that is more appropriate.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Falaise SA reconciles its management-defined performance measure to the comparable specified subtotal. One reconciling item, restructuring costs, is {reconciling_item}. Its income tax effect is {tax_effect}, determined using the simplified statutory-rate approach adopted by the case, and its effect on non-controlling interests is {nci_effect} (case data). Calculate the net effect of this item after tax and non-controlling interests.L2