Overview: The C12 Deferred Tax worksheet (C12) is designed to:
Calculate Deferred Tax Assets (DTA) and Deferred Tax Liabilities (DTL)
Reconcile deferred tax movements to Income Tax Expense (ITE)
Integrate directly with the Trial Balance
Align classification logic with the C20 Tax Reconciliation worksheet (C20)
Support automated journal preparation and rollover
The worksheet strengthens control over deferred tax calculations while reducing manual reconciliation risk.
Please refer to the Glossary for definitions of key terms used in this article.
Feature | Details | Support Articles |
Available in Binders | Accounts and Tax | |
Rollover | Supported | |
Post Journal | Supported |
Using the Accounts & Tax Binder
When the binder is opened in Excel:
Navigate to the Trial Balance (TRIAL BALANCE) in the Taskpane and link the C12 worksheet to either the Deferred Tax Asset (DTA) or Deferred Tax Liability (DTL) account. The worksheet supports reconciliation to two ledger accounts where required.
If required, relink the C12 worksheet to a different ledger account for reconciliation.
For more information on how to add a record template, refer to the Knowledge Article: How to link various records to a binder.
Note: We recommend choosing to rollover the record template, so that when preparing the work in the next financial year, the current year amounts from this year will automatically rollover into the Prior Year column in the worksheet in next year's binder.
Using the C12 – Deferred Tax worksheet
To view help information on the worksheet, click the "Using this Workpaper" button. The help information will be displayed in the Active task pane.
Settings Section:
Displayed Layout
Allow users to view the worksheet in two formats:
All items (default) – All accounts
Completed items – Accounts with Temporary Difference identified
Click Update Display to apply the selected layout. It is recommended that the layout selection is made after completing the Temporary Differences section.
Any hidden rows will be flagged. Click Update Display to show all hidden rows.
Tolerance Level
Users can set a preferred tolerance level, otherwise the binder default will apply automatically.
Section 1 – Reconciliation Summary
The Reconciliation Summary aggregates all accounts and temporary differences from the Temporary Differences table below.
Completion Order
To ensure the Reconciliation Summary functions correctly, users must complete the sections in the following order:
Complete the C12 Temporary Differences (See Section 2), including setting all relevant Account Classifications.
Complete the C20 – Tax Rec Comprehensive worksheet, ensuring Tax Rec Adjustments and Account Classifications are applied.
The Account Classifications available for selection in C20 are derived from those defined in the Temporary Differences section of C12. Accordingly, classifications must first be established in C12 before they can be applied in C20.
Dynamic Reconciliation Flow
Once both sections are completed:
Movements from C20 flow dynamically into the “Reconciliation of Deferred Tax Movement to Income Tax Expense” within the C12 Reconciliation Summary.
Any mismatch between C20 and C12 will be automatically flagged.
WARNING: This section is fully automated and users should NOT manually edit this section, including the adding in the new rows.
Any changes made to this section may impact the following year’s rollover and its integration with the C20 – Tax Reconciliation worksheet.
NOTE: The current template allows for up to 10 rows for Tax Only Assets/Liabilities, 20 rows for Assets, 20 rows for Liabilities, and 10 rows for Equity. If additional rows are required beyond these pre-set limits, please contact support for assistance.
Section 2 – Temporary Differences
The Temporary Differences section has been enhanced to improve automation, integrity, and alignment with the TRIAL BALANCE and C20 worksheet.
Automated Balance Sheet Integration
When connect to a TRIAL BALANCE, the Balance Sheet accounts will automatically populate.
Manual entry fields are available for any required adjustments. If additional rows are needed, please use the “Insert Row Below” button, in the Active Workpapers ribbon, to ensure formulas are copied to the inserted rows correctly.
Flexible Account Classification
Standard account classifications are provided.
Users may enter or overwrite classifications as required, and any new classifications entered will be automatically added to the selection list. These classifications will also be available for selection in C20 – Tax Rec Comprehensive.
Temporary Difference Recognition
Users must select the appropriate Temporary Difference Recognition (Full, Partial, None, or Exempt) for each line item to ensure accurate deferred tax treatment.
Where Partial or Exempt is selected, the corresponding Partial / Exempt field must be completed to reflect the portion subject to deferred tax treatment.
Deferred Tax Movements Recognition
Users must select the appropriate Recognition for each temporary difference identified. This selection determines how the deferred tax movement is allocated and recognised in the financial statements and journal.
For entities with a large volume of accounts, it is recommended to use the Display Layout – Completed Items View. This view restricts the display to accounts with identified temporary differences, facilitating a more focused review. Line items where recognition is not applicable will be greyed out.
Refresh Data
Where users update account balances or add new balance sheet accounts, the data must be refreshed to update this section by clicking on the Refresh Data button. All existing selections and classifications will remain unchanged after refresh.
Controlled Manual Inputs
The following fields may be manually updated within this section:
Account Classification
Temporary Difference Recognition
Partial / Exempt Amount (where applicable)
Deferred Tax Movement Recognition
Manual adjustments within the Tax Only section and any approved additional line items
Prior year balances (where unavailable)
All other calculations within this section — including Temporary Differences, DTA, DTL, and movements — are fully automated.
Section 3 – Deferred Tax Assets and Liabilities
This section reconciles the calculated DTA and DTL balances to the TRIAL BALANCE, where connected.
The worksheet total (after offsets) is compared to the Deferred Tax Balance per Ledger. Any difference between the worksheet balance and the ledger balance will be shown as a Variance and highlighted for review.
Section 4 – Deferred Tax Expense and Movement Recognition
This section summarises the net Deferred Tax movement for the period. The movements in DTA and DTL are calculated automatically and presented as the Total Net Movement. Where applicable, any previous balance entered will be incorporated into the calculation of the Deferred Tax Expense (or Income).
The allocation of this movement is determined by the Recognition selected for each temporary difference in Section 2. Based on those selections, the deferred tax movement is classified and recognised under:
Profit and Loss – Continuing Operations
Profit and Loss – Discontinued Operations
Other Comprehensive Income (OCI)
Equity
Goodwill
All allocations are system-driven and flow through to the Journal section accordingly.
Section 5 – Summary Journal
This section generates the recommended journal entries based on the Deferred Tax movements calculated above.
The journal is automatically populated according to the recognition and allocation determined in Section 4. Users are required the appropriate account names to ensure alignment with the general ledger.
The Post Journal function may then be used to post the entries. Users should ensure the selected accounts align with ledger records before finalising.
For more information on completing the remaining steps after posting the journal in the worksheet, refer to the knowledge article: How to Post Journal Entries directly from Active Worksheet