DTNR Remeasurement on Unrecognised Tax Losses

Summary:

We are seeing an issue in TRCS where tax rate remeasurement on fully unrecognised tax losses is appearing as a residual closing balance in the Deferred Tax Post DTNR form.

If a tax loss has already been fully derecognised through DTNR, we would expect it to remain fully derecognised after a tax rate change. However, where the CY tax rate differs from PY, TRCS calculates a remeasurement on the opening tax loss balance, but the DTNR amount does not appear to remeasure in line with this.

The Tax Losses DTNR form also does not appear to calculate any corresponding rate change adjustment, so there is currently no offset to the remeasurement being created on the deferred tax side. A separate Oracle Support ticket has also been raised for this behaviour.