Effective tax rate: Difference between revisions
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imported>Doug Williamson (Update for FRS 102) |
imported>Doug Williamson (Add link.) |
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* [[Income statement]] | * [[Income statement]] | ||
* [[Profit before interest and tax]] | * [[Profit before interest and tax]] | ||
* [[Tax]] | |||
* [[Tax reconciliation]] | * [[Tax reconciliation]] | ||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
Latest revision as of 08:38, 6 July 2022
(ETR).
An accounting measure, calculated by dividing the net tax charge reported in the income statement by the related profit before tax.
The effective tax rate will usually differ from the standard corporate rate of tax.
The quantified explanation of the differences between the effective tax rate and the standard corporate rate of tax is known as a tax reconciliation statement.
(Often abbreviated to 'tax rec'.)
Relevant accounting standards include Section 29 of FRS 102.
