Income Tax Reconciliation Percentages

Rule function

Rule 1: US.0198.10650

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.
Logic:
For each concept in the set of equivalent tax rates ($EQUIVALENT_TAX_RATES), check if a monetary value exists 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.

Rule 2: US.0198.10651

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.
Logic:
For each concept in the set of equivalent tax rates ($EQUIVALENT_TAX_RATES), check if both the percentage value and the equivalent monetary amount exist.
Message:
Informs the filer that a percentage value has been reported without the corresponding monetary amount and provides details about the missing concept.

Rule 3: US.0198.10652

Purpose:
Ensures that the reported percentage value for tax is correctly calculated based on the monetary values 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.
Logic:
Calculate the base income by dividing the tax amount (IncomeTaxExpenseBenefit) by the effective income tax rate (EffectiveIncomeTaxRateContinuingOperations).
For each concept in the set of equivalent tax rates ($EQUIVALENT_TAX_RATES), calculate the expected percentage value by dividing the monetary value by the base income.
Compare the calculated percentage value with the reported percentage value, allowing for a small tolerance.
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.

Problem solved by the rule

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.

Example rule message

Example Rule Message 1

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

Example Rule Message 2

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

Example Rule Message 3

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: 10651
Rule version: 26.0.0RC1

For Developers

The Global Rule Logic document contains general guidelines for implementation of rules.

The rule message template contains text and parametric reference to arguments of the rule operation, using the syntax ${parameter} to indicate that insertion of a parameter’s value is to occur.

Rule element ID index

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