Configuring Country by Country Reporting

Download Tax Global Transparency Guide

Activating Foreign Exchange for Country by Country Reporting

Administrators can enable Foreign Currency (F/X) Translation for Country-by-Country Reporting (CbCR) from Calculation Options. Enabling this option allows users to capture and review CbCR information in their native currency and enables dynamic currency translation functionality within Table 1 adjustments.

Note: The Use Foreign Currency Translation for CbCR option is available only when Global Transparency is installed.

To activate Foreign Currency Translation for CbCR:

1. Navigate to Administration.
2. Expand System.
3. Select Calculation Options.
4. In the Calculation Options dialog, select Use Foreign Currency Translation for CbCR.
5. Click OK.

When Foreign Currency Translation for CbCR is enabled, the system performs dynamic foreign currency translation for adjustments in Table 1, automatically recalculates translated values when exchange rates change, and makes the manual Foreign Currency Translation option available within Tax Calculations.

To disable Foreign Currency Translation for CbCR:

1. Navigate to Administration > System > Calculation Options.
2. Clear the Use Foreign Currency Translation for CbCR checkbox.
3. Click OK.

When Foreign Currency Translation for CbCR is disabled, the system no longer performs dynamic foreign currency translation for adjustments, does not recalculate values when exchange rates change, and removes the manual Foreign Currency Translation option from Tax Calculations.

CbC Financial Accounts

The Manage CbC Financial Accounts app is used to:

• Manage the financial account hierarchy used for Country-by-Country (CbC) reporting.
• Create and maintain financial accounts, including specifying disclosure requirements for EU Public CbCR and Australia Public CbCR.
• Import and export financial accounts to support data maintenance and migration.

The Manage CbC Financial Accounts app allows you to create and maintain financial accounts within the CbC financial account hierarchy and update account properties where permitted.

Understanding the CbC Financial Account Structure

The root account for the hierarchy is CbC_FinancialData.

This hierarchy contains the standard financial accounts used by the system for Country-by-Country reporting and public disclosure reporting. Additional custom accounts can be created as required.

The hierarchy root account (CbC_FinancialData):

• Cannot be deleted.

• Cannot be assigned to a different parent account.

All other account properties can be modified where permitted.

The following disclosure properties are available for each account:

• Disclose for EU CbCR – Indicates whether the account is included in EU Public CbCR reporting.
• Disclose for AU CbCR – Indicates whether the account is included in Australia Public CbCR reporting.

Note: Accounts cannot be deleted from the hierarchy.

Importing CbC Financial Accounts

The Import option in the Manage CbC Financial Accounts dialog allows you to create and update financial accounts in the database from a .csv file.

To import accounts:

1. In the Global Transparency navigation pane, click Manage CbC Financial Accounts. The Manage CbC Financial Accounts dialog appears.
2. For Option, select Import.
3. For Accounts, select CbC_FinancialData.
4. Select the .csv file to import.Click Open.
5. To skip confirmation of each new parent assignment, check the Automatically confirm parent assignment option.
6. Click OK. A table will be displayed showing the summary of all actions performed by the import.

Note: If the import file contains errors, the system displays a summary of the issues and no changes are applied.

.csv file example

where:

Managing CbC Financial Accounts

The Manage option in the Manage CbC Financial Accounts dialog allows you to create and update financial accounts directly within the application.

To manage accounts:

1. Click Manage CbC Financial Accounts. A prompt appears.
2. For Option, select Manage.
3. Select CbC_FinancialData.
4. Click OK.

The hierarchy is displayed in a table showing the available accounts and their properties.

Working with the Hierarchy

The account table displays the selected account in a hierarchical view.To expand or collapse the hierarchy:

• Click the expand icon to display child accounts.
• Click the collapse icon to hide child accounts.

Adding an Account

To add a new account:

1. Select the account that will be the parent of the new account.
2. Click Add.
3. Enter the account details:
   • Name – The account name.
   • Description – A description of the account.
   • Weight – Specifies the weighting applied to the account for reporting and calculation purposes.
   • Sort Order – Controls the position of the account within the hierarchy.
   • Disclose for EU CbCR – Select to include the account in EU Public CbCR reporting.
   • Disclose for AU CbCR – Select to include the account in Australia Public CbCR reporting.
4. Click OK.

Note: New accounts are not saved until you click Apply.

Modifying an existing account

You can modify the following account properties:

1. Description – Edit the value in the Description column.
2. Weight – Update the weighting applied to the account.
3. Sort Order – Change the order in which the account appears under its parent.
4. Disclose for EU CbCR – Select or clear the checkbox to control inclusion in EU Public CbCR reporting.
5. Disclose for AU CbCR – Select or clear the checkbox to control inclusion in Australia Public CbCR reporting.
6. To change the parent of an account:
   1. Select the account in the table.
   2. Click Edit.
   3. Enter or select a new parent account.
   4. Click OK.

No changes are made to the database until you click Apply.

Applying Changes

To save changes to the hierarchy, click Apply.

The system validates the changes and displays a summary of:

• Accounts added.
• Accounts modified.
• Any errors encountered during processing.

Only valid changes are applied.

Refreshing the accounts

Click Refresh to refresh the list of accounts.

Click Symbols to change the selected account and refresh the list of accounts.

In either case, if there are any unapplied changes, you will be prompted to apply or discard any changes that have not yet been applied.

• Choose Apply Changes to apply any changes made, then refresh the list of accounts. If there are any errors the refresh will not be performed.
• Choose Discard Changes to discard any changes made, then refresh the list of accounts.
• Click Cancel to return to the table without refreshing the list of accounts.

Exporting from the Account Table

1. Click Export to export from the accounts table to a .csv file.
2. Select the .csv file to export to.

   Note: If the file selected does not currently exist, it will be created during the export process.

3. Click OK. A confirmation dialog will appear.
4. Click View File to view the exported file.

Exporting CbC Financial Accounts

The Export option in the Manage CbC Financial Accounts dialog allows you to export accounts and their related settings from the database to a .csv file.

To export accounts:

1. Click on Manage CbC Financial Accounts. A prompt appears.
2. For Option, select Export.
3. Select the .csv file to export to.

   Note: If the file selected does not currently exist, it will be created during the export process.

4. Select symbols to export.
5. Click OK. A confirmation dialog will appear.
6. Click View File to view the exported file.

Country by Country automation

The Country by Country (CbC) Automation application enables users to automatically populate Country-by-Country reporting accounts using data from predefined source accounts and reporting dimensions. By automating data calculations and transfers, the application reduces manual data entry and helps ensure consistency in CbC reporting.

CbC automations are maintained at the entity level and can be configured for individual reporting accounts. Automation settings define how source data is selected, calculated, and populated into the corresponding CbC reporting accounts.

Accessing Country by Country Automation

To access the Country by Country Automation app:

1. Navigate to Administration > Global Transparency > Country by Country > Accounts > Country by Country Automation.
2. Select the required Entity from the Entities selector.
3. The Country by Country Automation grid displays the available CbC reporting accounts and their associated automation settings.

Managing Country by Country Automations

The Country by Country Automation grid allows users to define how values are automatically populated for each Country-by-Country reporting account.

The following reporting accounts can be automated, depending on system configuration:

• Unrelated Party Revenue
• Related Party Revenue
• Total Revenue
  • Profit (Loss) Before Income Tax
  • Income Tax Paid (on Cash Basis)
  • Income Tax Accrued (Current Year)
  • Stated Capital
  • Accumulated Earnings
  • Number of Employees
  • Tangible Assets Other Than Cash and Cash Equivalents
  • Public Subsidies Received

To configure an automation, select the required reporting account in the grid and define or update the automation settings in the available columns. Once the configuration is complete, click Submit to save the changes.

Note: To modify an account's settings, right-click any cell in the account row and select Define... from the context menu. This opens the account definition form, where you can view and update the account's configuration settings.

Managing settings

For each reporting account, configure the following fields:

1. Account: Select the account for which you would like to set automation settings.

2. Automate Amounts: Select True to enable automation for the account.

   When enabled, values are automatically calculated and populated based on the configured source data. When disabled, values must be entered manually or loaded through another process.

3. Calculation Method: It defines how the system calculates the value that is transferred to the target Country-by-Country reporting account. Available options include:
   1. Year-To-Date: Uses the current period Year-to-Date balance from the source data. Additional calculation methods may be available depending on system configuration.

4. %: Enter the percentage you want to apply to the source amount prior to transferring it to the target account. The % value entered must be a number between -100 and 100.

5. Source Accounts: Specify the source account(s). You can select one or more parent or leaf symbols.

6. Source Reporting Methods: It defines the reporting method members used when retrieving source data. The automation will only use data associated with the selected reporting method.

7. Source Currencies: Defines the currency members that will be included when sourcing data.

8. Source DETAILS: Specify the source detail symbol(s). The source details column will display if attribute DETAILST is set to a parent symbol or contains multiple symbols.
9. Source SEGMENTS: Specify the source segment symbol(s). The source segments column will display if attribute SEGMENTST is set to a parent symbol or contains multiple symbols.

10. Source Time Period: It specifies the time period from which data is retrieved for the automation calculation. Select one of the available options:

    • Actual – Uses data from the Actual reporting period only.
    • Actual /Return – Uses data from the Actual /Return reporting period, where applicable.
11. Override Global Settings: Indicates whether the account-specific automation overrides any global automation settings defined elsewhere in the application.
    • When enabled, the settings defined on the current row take precedence over global automation definitions.
12. Status Code: Indicates the processing status of the Country-by-Country reporting record.

Modifying an account

You can change the properties of an existing account:

1. Locate the reporting account in the grid.
2. Modify one or more of the following settings:

3. Change the 'Automate Methods' to be used by selecting a different option.

4. Change the % to be used in the automation calculation by modifying the % value.
5. Change the source account(s), Source Reporting Methods by selecting different source account symbols.
6. Change source details, segments or Time Period by selecting different source symbols.

No changes are applied until you click Submit.

Applying changes

To apply changes to the automation settings, click Submit.

• Any changes to the ‘Automate Amounts’ setting will be applied.
• Any changes to the ‘Calculation Method’ setting will be applied.
• Any changes to the ‘%’ setting will be applied.
• Any changes to the ‘Source Accounts’ setting will be applied.
• Any changes to the source details, segments, or Time Period settings will be applied.

Refreshing the automations

Click Refresh to refresh the list of automation settings.

If there are any unapplied changes, you will be prompted to apply or discard any changes that have not yet been applied.

• Choose Submit to apply any changes made, then refresh the list of automation settings. If there are any errors the refresh will not be performed.
• Choose Don't Submit to discard any changes made, then refresh the list of accounts.
• Click Cancel to return to the table without refreshing the list of accounts.