Applies the quantitative 5 percent threshold of ASC 740-10-50-12A(b), as amended by ASU 2023-09, to one candidate rate reconciliation item. The comparison is taken in absolute amount on both sides, per BC35 of the Update, which is what makes the test well defined for a loss-making entity: a negative pretax income is fully assessable here, not degenerate. The category enum has nine members: the eight closed by 740-10-50-12A(a) plus the item within none of them that 740-10-50-12A(b)(3) addresses. Verdicts are decided by exact cross multiplication on unrounded inputs, never by rounding a percentage first.
ASC 740Rate ReconciliationASU 2023-09Zero PIIClient-side only
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Scope & reliance
Verify-only: this tool does not compute the rate reconciliation, does not determine the statutory rate, does not decide an item's category, does not choose the level of aggregation at which the threshold is applied, and does not apply the separate income-taxes-paid test of ASC 740-10-50-23. A zero threshold base is reported not_assessable with a named caveat rather than divided silently. BC38 records that the Board considered and declined to give guidance for the break-even and no/minimal-rate cases, so this tool draws no numeric break-even band. No FASB text is reproduced here; paragraph references, dates, scope and threshold values only. No formal correctness proof exists for this node yet; see the proof-status note below the results.
Candidate Reconciling Item
Result
Proof status
This node ships compute_proof_ready: deferred. No formal correctness proof has been produced for this kernel; the result above is a deterministic recompute, verified by a property-test floor with forced IEEE-754 boundaries, not a proven one.