A4 IR10 and Benchmarks

The purpose of this workpaper is to populate the IR10 Financial Summary, which is used calculate the key performance indicators benchmarked by the Inland Revenue Department.

Workpaper set up

Select the appropriate industry type from the drop-down menu. The business size is based on the annual turnover of the business populated in box 2.

Use the Rollover Data function in the CCH Workpapers ribbon to import GL codes from last year’s workbook.

Export IR10 data to iFirm Tax

Click the Export to CSV button to export the IR10 data to CSV in the correct format to be uploaded to iFirm tax.

Populate the IR10

In order to use the KPI and benchmarking analysis, you will need to ensure all accounts that are used in calculating the KPIs have been populated in the IR10.

  • General ledger integration:
    • Appropriate GL codes should be entered in column J. These can be entered manually, can be rolled forward from last year’s workbook using the Rollover Data function or for accounts where GL data has already been populated on the B1 Review Summary, these codes will be pulled through automatically.
    • There are some accounts which are required to calculate the KPIs. If these cells have not been populated, you can manually enter account codes or enter balances directly using figures from the profit and loss statement and balance sheet.
    • To enter multiple codes, separate each code with a comma (,). For example, 601,603 .
    • To enter a range of codes, separate each code with a hyphen (-). For example, 601-603.
  • Manually enter data: You can overwrite the numbers populated in the IR10 boxes with the figures from the profit and loss statement and balance sheet.

Examples provided by Inland Revenue in the IR10 guide of what accounts should be included in each box is available in the comments field.

Workpaper references

CCH Workpapers applicable to each box have been linked to in column L. Click on the hyperlink to navigate to the workpaper.

To link your firm’s custom workpapers, select the applicable cell in column M and insert a hyperlink. When in the hyperlink wizard, navigate to the This document section and select the workpaper you would like to reference.

IRD benchmarks

The IRD has provided benchmarks for 45 industries based on IR10 data for the 2013/2014 tax year. The benchmarks are categorised into four quartiles, based on turnover and numbers of participants in each industry:

  • micro 0 to 25%
  • small 25% to 50%
  • medium 50% to 75%
  • and large 75% to 100%

KPIs which are outside of the range identified by Inland Revenue are displayed in a red font.

KPIs included

This workpaper is populated with the 11 different KPIs listed below, some of which are benchmarked against Inland Revenue published benchmarks. See our KPI analysis page for details of each KPI, including the formulas used and definitions.

  • Stock turnover
  • Inventory turnover period:
  • Gross profit ratio
  • Salaries and wages turnover ratio
  • Debtor days
  • Current ratio
  • Return on total assets:
  • Quick ratio
  • Debt ratio
  • Liability structure
  • Return on equity