Superannuation

Interest reconciliation

Statement Purpose
This statement allows for tax adjustments to be made to the interest amounts recognized in the net accounting income/(loss) for the period.

Data Flow

The interest income per accounts is linked from the Income statement. Totals from this statement are linked to the relevant components on the Foreign sourced income statement. The net of the withholding tax adjustments is totaled and linked to the
Withholding tax gross up
 section of the
Foreign sourced income
 statement from where the amount is added to taxable or attributed income in the
Tax reconciliation income
 statement.

Explanation of Fields

Adjustments, where required, are required to be input in respect of:
  • Qualifying securities held by the trust for the purposes of Division 16E - the interest required to be included in assessable income in respect of the securities is to be added to taxable income, whilst the interest brought to account in respect of those securities for accounting purposes is deducted from taxable income.
  • Interest receivable at year end, unless the policy of the super fund is to recognize interest on an accrual basis.
  • Interest receivable - pre TOFA at year end, unless TOFA transitional balancing adjustment method is set to "Yes" on Configuration statement.
  • Any other adjustments, which should be input in the ‘other adjustments’ section.
  • The domestic interest - non-withholding tax is disclosed separately from other interest income for expenses allocation and distribution calculations in accordance with s128F of ITAA 1936.
Adjustments should be disclosed in the appropriate column based upon whether they impact the domestic, foreign or domestic non-withholding tax income components.
After the first year, the opening adjustment amounts will roll forward from the closing amount from previous years via an import of prior period data.
When the Calculation statement option for the TOFA ‘Hedging’ election is set to
Yes
, rows for TOFA gains and TOFA (losses) appear. These two rows link from the "Interest Income" and "Domestic interest non-withholding tax" in the Hedging statement.
When the Calculation statement option called
TOFA applicable
 or
Fair value (elective)
 are set to
Yes
, the following rows appear:
  • Interest receivable - pre TOFA opening balance
  • Interest receivable - pre TOFA closing balance
The interest withholding tax gross up column is linked from the
Withholding tax - interest
 line in the Income statement. Withholding tax relating to the opening balance of interest receivable should be entered as an addition to taxable income, whilst withholding tax relating to the closing balance of interest receivable should be deducted from taxable income.

Signage

  • Increases to the assessable interest amount are entered as positive amounts.
  • Decreases to the assessable interest amount are entered as negative amounts.
  • Opening balances to interest receivables/adjustments are entered as positive amounts.
  • Opening balances to interest receivables/adjustments are entered as negative amounts.

This article applies to:

  • Product: ONESOURCE Corporate Tax