Tracking Unrecognized Deferred Tax Assets

Nadia Lodroman | Oracle EPM Consultant | Integrity in Every Insight.

31 August 2025

Listen to Tresora and Ledgeron's chatting about this blog post:

A Look at the New DTNR Functionality in Oracle Tax Reporting

For multinational organizations, meeting the detailed disclosure requirements of International Financial Reporting Standards (IFRS) is a significant challenge. Specifically, IAS 12, Income Taxes, mandates detailed reporting on deferred tax assets, including those arising from unused tax losses and tax credits. A common pain point is the tracking and disclosure of such assets for which no deferred tax asset is recognized in the statement of financial position.

Oracle's September 2025 update for Tax Reporting introduces a targeted solution to address this precise business requirement.

The Business Requirement: Tracking Unrecognized Deferred Tax Assets

Under IAS 12, entities are required to disclose the amount and expiration date of deductible temporary differences, unused tax losses, and unused tax credits for which no deferred tax asset is recognized.

Historically, this has been a manual exercise for many tax departments. The necessary data is often maintained in offline spreadsheets, creating significant challenges related to:
  • Data Integrity: Manual processes are prone to error, posing a risk to the accuracy of financial statements.
  • Efficiency: Consolidating and reconciling this data for disclosure purposes is time-consuming and resource-intensive.
  • Auditability: Providing a clear, systematic audit trail for figures managed outside of core financial systems can be difficult.
The Solution: "Tax Losses and Credits DTNR by Year of Expiration"

The new functionality within Oracle Tax Reporting directly embeds this process into the application. By enabling this feature, organizations gain access to new forms—Tax Losses DTNR and Tax Credits DTNR—designed to systematically capture and track unrecognized tax losses and credits based on their year of expiration.
This moves a critical reporting function from an offline, manual process into a controlled and automated system environment.

Key Business Benefits

Integrating this process delivers several tangible benefits for corporate tax and finance teams:
Improved Accuracy and Control: By centralizing the tracking of unrecognized deferred tax assets, you reduce the risk of manual errors and ensure a single, reliable source of truth for reporting.
  • Enhanced Efficiency: The automation of data collection and reporting for this specific disclosure frees up valuable team resources, allowing a greater focus on strategic analysis rather than manual data preparation.
  • Streamlined Compliance and Auditing: The feature is designed specifically to meet IFRS requirements, simplifying the preparation of financial statement notes. It also provides a clear, auditable trail directly within the Oracle platform, satisfying auditor requests more efficiently.
  • Strategic Tax Planning: A clear view of unrecognized tax assets, categorized by expiration date, provides crucial insights for proactive tax planning and forecasting efforts.
Conclusion

The addition of the DTNR mechanism for unrecognized tax losses and credits in Oracle Tax Reporting 25.09 is a significant step forward for organizations reporting under IFRS. It replaces a high-risk, manual process with a streamlined, system-driven solution that enhances accuracy, efficiency, and compliance.

If your organization is looking to leverage this new functionality or optimize your tax provision and reporting processes, expert guidance can ensure a smooth and effective implementation.

For a detailed consultation on how this feature can benefit your specific business needs, please contact Nadia Lodroman at www.lodroman.com.

Turning financial complexity into operational clarity. Because in Finance, Integrity is Permanent.

General EPM Strategy FAQs

  • Why should a company use EPM Automate instead of custom scripting

    EPM Automate allows for robust, bi-directional data orchestration between Oracle EPM and source ERPs (like NetSuite or Fusion) using native capabilities. It is highly scalable, easier to maintain during Oracle's monthly updates, and avoids the fragility of heavy custom coding.

  • Can Oracle Cloud EPM integrate with multiple different ERPs simultaneously?

    Yes. Through strategic data pipeline architecture, Oracle EPM can ingest, consolidate, and even write-back finalized data to multiple disparate ERPs concurrently, acting as the single source of truth for the enterprise.

  • How does Oracle FCCS handle Minority Interest (NCI) and CTA?

    While standard FCCS provides out-of-the-box functionality, complex global enterprises often require advanced configuration to isolate and calculate Minority Interest (NCI) and Cumulative Translation Adjustments (CTA) accurately at the top consolidated hierarchy without relying on manual journals.

  • Can you bypass the out-of-the-box Goodwill calculation in Oracle FCCS?

    Yes. By utilizing advanced native configuration and custom consolidation rules, you can bypass standard Goodwill Input/Offset functionality to meet highly specific, non-standard acquisition accounting requirements.

  • How many daily transactions can Oracle ARCS process?

    Oracle ARCS is built for enterprise scale. With proper architecture in the Transaction Matching engine, ARCS can easily process and auto-match hundreds of thousands of daily banking transactions, representing billions of dollars in value.

  • What is the difference between Transaction Matching and Reconciliation Compliance in ARCS?

    Transaction Matching automates the high-volume, line-by-line matching of data (like daily bank feeds or ACH). Reconciliation Compliance is used to govern the period-end justification of broader balance sheet account balances.

  • Does Oracle TRC handle Country-by-Country Reporting (CbCR)?

    Yes. Oracle Tax Reporting Cloud (TRC) provides built-in frameworks to automate Country-by-Country Reporting, ensuring multinational organizations remain compliant with global BEPS (Base Erosion and Profit Shifting) regulations.

  • How does Oracle TRC integrate with FCCS?

    TRC and FCCS share the same platform architecture, allowing for seamless data flow. Finalized pre-tax consolidated data from FCCS feeds directly into TRC for tax provisioning, ensuring perfect alignment between the finance and tax departments.

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