Accounting for the R&D tax offset

A revised R&D tax offset regime, also known as the R&D Tax Incentive (RDTI), has taken effect for income years commencing on or after 1 July 2021.

This Clarity in financial reporting publication:

• Explains how the revised R&D tax offset works in practice
• Explores how the R&D tax offset should be accounted for, including the accounting policy options and general practice, deferred tax effects, presentation and disclosure considerations and other matters
• Outlines the accounting impacts of the new ‘clawback’ mechanism
• Provides examples of accounting for the R&D tax offset using various accounting policies, both for refundable and non-refundable R&D tax offsets.