ICA to Retained Earnings Reconciliation workpaper (IRE)

Current status of the IRE workpaper and the fields that have changed from the original automation guidelines.

The ICA to Retained Earnings Reconciliation (IRE) workpaper reconciles the Imputation Credit Account position against Retained Earnings. It applies only to companies, and not to Look Through Companies (LTCs).

Data extraction

  • Retained Earnings At Year End is formula-driven (marked fx), calculated from the accounts mapped to this workpaper, currently Retained Earnings and Dividend Payable, shown under Accounts in this Workpaper.

  • Tax Losses Carried Forward is also formula-driven, defaulting to $0.00 where there are none to bring forward.

  • Permanent/Timing Differences is the one manual-entry field in this block, no fx marker, left blank until the preparer enters any adjustment.

  • Adjusted Retained Earnings is calculated as Retained Earnings At Year End plus Tax Losses Carried Forward plus Permanent/Timing Differences.

  • Expected ICA's is formula-driven, calculated from Adjusted Retained Earnings, effectively the imputation credit balance the retained earnings figure implies.

  • Actual ICA's is a manual-entry field, populated from the Imputation Credit Account workpaper's actual closing balance, and defaults to $0.00 until entered.

Adjust for payments / refunds not received / refunded as at 31 March

This section bridges the gap between Expected and Actual ICA's using payments and refunds not yet reflected in the account:

  • Current Year Provisional Tax Not Yet Paid (formula-driven)

  • Terminal Tax Not Yet Paid (formula-driven)

  • Refund Due (formula-driven)

  • Total Adjusted sums the three above.

Adjustment schedule (table)

A free-form table below the two summary blocks lets the preparer add line items explaining any remaining difference, each with a Description, B/FD, CY, and Total column, rows can be added or removed as needed. Common pre-listed descriptions include Accumulated ICs converted to losses, Overseas Tax Credit, and Overseas Tax Credit Lost, all defaulting to $0.00 until populated.

  • Adjusted ICAs sums Total Adjusted plus the adjustment schedule table.

  • Difference is the final reconciling figure, Adjusted ICAs less Expected ICA's, this is the variance shown in the workpaper header and what needs to be nil (or fully explained) before the workpaper can be marked reconciled.

Supporting

The Accounts in this Workpaper panel shows this workpaper is currently mapped to two GL accounts: Retained Earnings and Dividend Payable, both under a single parent, "ICA to Retained Earnings Reconciliation."

Balance per GL

Sum of the accounts mapped to this workpaper in CoA Mapping, currently Retained Earnings and Dividend Payable.

How to access

  • Go to Jobs and open the relevant job.

  • Click the Workpapers icon or navigate to Job Results, then Workpapers.

  • Select IRE on the Workpapers Dashboard.