Rule ID: DQC_0198 Status: Final
Release date: February 28, 2025 Effective date: September 01, 2025

Purpose:

Ensures that if a monetary value for tax is provided in a 10-K filing, an equivalent percentage amount must also be provided.

Conditions:

The document type must be 10-K or 10-KT.
The document period end date must be on or after December 15, 2025.
The filer must not be an Emerging Growth Company (EGC). Filers with a DocumentPeriodEndDate on or after December 15, 2026 are treated as non-EGC for this rule regardless of their EGC flag.
An income-tax disclosure network (identified by the presence of EffectiveIncomeTaxRateReconciliationTable or related elements in a Disclosure presentation role) must be present in the filing.

Logic:

For each concept in the set of equivalent tax rates ($EQUIVALENT_TAX_RATES), the rule checks whether the monetary concept is present in the income-tax presentation network. If it is, the rule checks if a non-nil, non-zero fact exists for that monetary concept (period end on or after December 15, 2025, and period length greater than 350 days) but the equivalent percentage amount is missing.

Message:

Informs the filer that a monetary value has been reported without the corresponding percentage amount and provides details about the missing concept.

Purpose:

Ensures that if a percentage value for tax is provided in a 10-K filing, an equivalent monetary amount must also be provided.

Conditions:

The document type must be 10-K or 10-KT.
The document period end date must be on or after December 15, 2025.
The filer must not be an Emerging Growth Company (EGC). Filers with a DocumentPeriodEndDate on or after December 15, 2026 are treated as non-EGC for this rule regardless of their EGC flag.
An income-tax disclosure network must be present in the filing.

Logic:

For each concept in the set of equivalent tax rates ($EQUIVALENT_TAX_RATES), the rule checks whether the percentage concept is present in the income-tax presentation network. If it is, the rule checks if a non-nil, non-zero fact exists for that percentage concept (period end on or after December 15, 2025, and period length greater than 350 days) but the equivalent monetary amount is missing.

Message:

Informs the filer that a percentage value has been reported without the corresponding monetary amount and provides details about the missing concept.

Purpose:

Ensures that the reported percentage value for tax is correctly calculated based on the monetary values provided.

Conditions:

This rule runs on all document types for all periods, except that it is skipped entirely for REIT filers (identified by the presence of srt:RealEstateAndAccumulatedDepreciationByPropertyTable in a Disclosure presentation network).

Logic:

Calculate base income by looking up IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest (or fallback alternatives). For each concept in $EQUIVALENT_TAX_RATES, calculate the expected percentage by dividing the monetary value by the base income and compare using numeric interval arithmetic, allowing for a small tolerance of 0.01.

If the standard comparison fails, the rule checks an alternative calculation that deducts Non-Controlling Interest (NCI) from base income. If the NCI-adjusted calculation is also out of tolerance the rule reports an error with both the standard message and a supplementary NCI-adjustment message explaining the alternative calculation.

For companies that report income before tax excluding equity-method investments (IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments) while some filers include equity-method income in the tax-rate denominator, an additional alternative base-income calculation adding IncomeLossFromEquityMethodInvestments is also attempted before an error is raised.

Message:

Informs the filer if the reported percentage value does not match the calculated value and provides details about the discrepancy. Suggests changing the decimal values if they are set to infinity. If the filing has NCI data, an additional message explains the NCI-adjusted alternative calculation.

The rule broadly solves the problem of ensuring consistency and accuracy in the reporting of tax-related values in financial statements, specifically in 10-K filings. Here are the key aspects of the problem it addresses:

Scenario 1:

A company reports a monetary value for income tax expense but fails to provide the corresponding effective income tax rate as a percentage.

Scenario 2:

A company reports an effective income tax rate but does not provide the corresponding monetary value for income tax expense.

Scenario 3:

The reported effective income tax rate does not match the calculated rate based on the provided monetary values, indicating a potential error in the financial statements.

The filer has reported a value for the concept IncomeTaxExpenseBenefit with a value of 50,0000. This concept should have an equivalent percentage amount. Please provide the equivalent percentage amount for this concept of IncomeTaxExpenseBenefit. See the FASB implementation guide at https://xbrl.fasb.org/impguidance/IT_TIG/incometaxes.pdf for more information.

The properties of this IncomeTaxExpenseBenefit fact are:
Period: 2025-12-31
Dimensions: None
Unit: USD

Rule Element ID: 10650 Rule version: 26.0.0RC1

The filer has reported a value for the concept EffectiveIncomeTaxRateContinuingOperations with a value of 25%. This concept should have an equivalent monetary amount. Please provide the equivalent monetary amount for this concept of EffectiveIncomeTaxRateContinuingOperations. See the FASB implementation guide at https://xbrl.fasb.org/impguidance/IT_TIG/incometaxes.pdf for more information.

The properties of this EffectiveIncomeTaxRateContinuingOperations fact are:
Period: 2025-12-31
Dimensions: None
Unit: Percentage

Rule Element ID: 10651 Rule version: 26.0.0RC1

The filer has reported a value for the concept us-gaap:EffectiveIncomeTaxRateReconciliationTaxExemptIncome with a value of -0.01. This value should be calculated by taking the value of us-gaap:IncomeTaxReconciliationTaxExemptIncome with a value of 93,000 divided by the value of netincome of 8,866,359.447 (rounded 4d). This equals 0.0105 (rounded 4d). Please provide the equivalent percentage amount for this concept of -0.01. The value for net income should be calculated as the value of IncomeTaxExpenseBenefit divided by the value of EffectiveIncomeTaxRateContinuingOperations.

The properties of this us-gaap:EffectiveIncomeTaxRateReconciliationTaxExemptIncome fact are:
Period: 2021-10-01 to 2022-09-30
Decimals: 2 Dimensions: Unit: pure

Rule Element ID: 10652 Rule version: 26.0.0RC1

The rule element ID is used to identify unique elements or combinations of elements tested in the rule.

Note: Rule element DQC.US.0198.10661 (IncomeTaxAuthorityAxis) has been removed. It conflicted with FASB guidance and has been replaced by a comment in the rule file.

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