Accenture PLC (ACN)

Income Tax Accounting Policy
Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Analyst Adjustments: Removal of Deferred Taxes
Adjusted Ratios: Removal of Deferred Taxes (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Accenture calculates and provides for income taxes in each of the tax jurisdictions in which Accenture operates. Deferred tax assets and liabilities, measured using enacted tax rates, are recognized for the future tax consequences of temporary differences between the tax and financial statement bases of assets and liabilities. A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized. Accenture establishes liabilities or reduces assets when Accenture believes tax positions are not more likely than not of being sustained if challenged. Recognized tax positions are measured at the largest amount of benefit greater than 50 percent likely of being realized. Each fiscal quarter, Accenture evaluates tax positions and adjusts the related tax assets and liabilities in light of changing facts and circumstances.

Source: 10-K (filing date: 2018-10-24).

Accenture PLC, income tax expense (benefit), continuing operations

USD $ in thousands

	12 months ended	Aug 31, 2018		Aug 31, 2017		Aug 31, 2016		Aug 31, 2015		Aug 31, 2014		Aug 31, 2013
	U.S. federal
	U.S. state and local
	Non-U.S.
	Current tax expense
	U.S. federal
	U.S. state and local
	Non-U.S.
	Deferred tax expense (benefit)
	Provision for income taxes

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

Item	Description	The company
Current tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Accenture PLC's current tax expense increased from 2016 to 2017 and from 2017 to 2018.
Deferred tax expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Accenture PLC's deferred tax expense (benefit) declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Accenture PLC's provision for income taxes declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

Accenture PLC, effective income tax rate (EITR) reconciliation

		Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
	U.S. federal statutory income tax rate
	U.S. state and local taxes, net
	Non-U.S. operations taxed at lower rates
	Final determinations
	Other net activity in unrecognized tax benefits
	Divestitures
	Excess tax benefits from share based payments
	Changes in tax laws and rates
	Other, net
	Effective income tax rate

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Accenture PLC's effective income tax rate declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

Accenture PLC, components of deferred tax assets and liabilities

USD $ in thousands

		Aug 31, 2018		Aug 31, 2017		Aug 31, 2016		Aug 31, 2015		Aug 31, 2014		Aug 31, 2013
	Pensions
	Revenue recognition
	Compensation and benefits
	Share-based compensation
	Tax credit carryforwards
	Net operating loss carryforwards
	Depreciation and amortization
	Deferred amortization deductions
	Indirect effects of unrecognized tax benefits
	Other
	Deferred tax assets, gross
	Valuation allowance
	Deferred tax assets
	Revenue recognition
	Depreciation and amortization
	Investments in subsidiaries
	Other
	Deferred tax liabilities
	Net deferred tax assets (liabilities)

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

Item	Description	The company
Deferred tax assets, gross	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Accenture PLC's deferred tax assets, gross increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Accenture PLC's deferred tax assets increased from 2016 to 2017 but then declined significantly from 2017 to 2018.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Accenture PLC's net deferred tax assets (liabilities) increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Accenture PLC, deferred tax assets and liabilities, classification

USD $ in thousands

		Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
	Current deferred tax assets
	Non-current deferred tax assets
	Current deferred tax liabilities
	Non-current deferred tax liabilities

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

Item	Description	The company
Non-current deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Accenture PLC's non-current deferred tax assets increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.
Non-current deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Accenture PLC's non-current deferred tax liabilities increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

Accenture PLC, adjustments to financial data

USD $ in thousands

		Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
	Adjustment to Current Assets
	Current assets (as reported)
	Less: Current deferred tax assets, net
	Current assets (adjusted)
	Adjustment to Total Assets
	Total assets (as reported)
	Less: Current deferred tax assets, net
	Less: Noncurrent deferred tax assets, net
	Total assets (adjusted)
	Adjustment to Current Liabilities
	Current liabilities (as reported)
	Less: Current deferred tax liabilities, net
	Current liabilities (adjusted)
	Adjustment to Total Liabilities
	Total liabilities (as reported)
	Less: Current deferred tax liabilities, net
	Less: Noncurrent deferred tax liabilities, net
	Total liabilities (adjusted)
	Adjustment to Total Accenture Plc Shareholders' Equity
	Total Accenture plc shareholders' equity (as reported)
	Less: Net deferred tax assets (liabilities)
	Total Accenture plc shareholders' equity (adjusted)
	Adjustment to Net Income Attributable To Accenture Plc
	Net income attributable to Accenture plc (as reported)
	Add: Deferred income tax expense (benefit)
	Net income attributable to Accenture plc (adjusted)

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

Accenture PLC, Financial Data: Reported vs. Adjusted

Accenture PLC, adjusted ratios

		Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
	Current Ratio
	Reported current ratio
	Adjusted current ratio
	Net Profit Margin
	Reported net profit margin
	Adjusted net profit margin
	Total Asset Turnover
	Reported total asset turnover
	Adjusted total asset turnover
	Financial Leverage
	Reported financial leverage
	Adjusted financial leverage
	Return on Equity (ROE)
	Reported ROE
	Adjusted ROE
	Return on Assets (ROA)
	Reported ROA
	Adjusted ROA

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Accenture PLC's adjusted current ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Accenture PLC's adjusted net profit margin deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Accenture PLC's adjusted total asset turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Accenture PLC's adjusted financial leverage declined from 2016 to 2017 and from 2017 to 2018.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity.	Accenture PLC's adjusted ROE deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Accenture PLC's adjusted ROA deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

Accenture PLC, Ratios: Reported vs. Adjusted

		Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
	As Reported
	Selected Financial Data (USD $ in thousands)
	Current assets
	Current liabilities
	Ratio
	Current ratio¹
	Adjusted for Deferred Taxes
	Selected Financial Data (USD $ in thousands)
	Adjusted current assets
	Adjusted current liabilities
	Ratio
	Adjusted current ratio²

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

2018 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= hidden ÷ hidden = hidden

² Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Accenture PLC's adjusted current ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

		Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
	As Reported
	Selected Financial Data (USD $ in thousands)
	Net income attributable to Accenture plc
	Revenues before reimbursements (Net revenues)
	Ratio
	Net profit margin¹
	Adjusted for Deferred Taxes
	Selected Financial Data (USD $ in thousands)
	Adjusted net income attributable to Accenture plc
	Revenues before reimbursements (Net revenues)
	Ratio
	Adjusted net profit margin²

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

2018 Calculations

¹ Net profit margin = 100 × Net income attributable to Accenture plc ÷ Revenues before reimbursements (Net revenues)
= 100 × hidden ÷ hidden = hidden

² Adjusted net profit margin = 100 × Adjusted net income attributable to Accenture plc ÷ Revenues before reimbursements (Net revenues)
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Accenture PLC's adjusted net profit margin deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

		Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
	As Reported
	Selected Financial Data (USD $ in thousands)
	Revenues before reimbursements (Net revenues)
	Total assets
	Ratio
	Total asset turnover¹
	Adjusted for Deferred Taxes
	Selected Financial Data (USD $ in thousands)
	Revenues before reimbursements (Net revenues)
	Adjusted total assets
	Ratio
	Adjusted total asset turnover²

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

2018 Calculations

¹ Total asset turnover = Revenues before reimbursements (Net revenues) ÷ Total assets
= hidden ÷ hidden = hidden

² Adjusted total asset turnover = Revenues before reimbursements (Net revenues) ÷ Adjusted total assets
= hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Accenture PLC's adjusted total asset turnover deteriorated from 2016 to 2017 but then improved from 2017 to 2018 not reaching 2016 level.

		Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
	As Reported
	Selected Financial Data (USD $ in thousands)
	Total assets
	Total Accenture plc shareholders' equity
	Ratio
	Financial leverage¹
	Adjusted for Deferred Taxes
	Selected Financial Data (USD $ in thousands)
	Adjusted total assets
	Adjusted total Accenture plc shareholders' equity
	Ratio
	Adjusted financial leverage²

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

2018 Calculations

¹ Financial leverage = Total assets ÷ Total Accenture plc shareholders' equity
= hidden ÷ hidden = hidden

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Accenture plc shareholders' equity
= hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Accenture PLC's adjusted financial leverage declined from 2016 to 2017 and from 2017 to 2018.

		Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
	As Reported
	Selected Financial Data (USD $ in thousands)
	Net income attributable to Accenture plc
	Total Accenture plc shareholders' equity
	Ratio
	ROE¹
	Adjusted for Deferred Taxes
	Selected Financial Data (USD $ in thousands)
	Adjusted net income attributable to Accenture plc
	Adjusted total Accenture plc shareholders' equity
	Ratio
	Adjusted ROE²

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

2018 Calculations

¹ ROE = 100 × Net income attributable to Accenture plc ÷ Total Accenture plc shareholders' equity
= 100 × hidden ÷ hidden = hidden

² Adjusted ROE = 100 × Adjusted net income attributable to Accenture plc ÷ Adjusted total Accenture plc shareholders' equity
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity.	Accenture PLC's adjusted ROE deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

		Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013
	As Reported
	Selected Financial Data (USD $ in thousands)
	Net income attributable to Accenture plc
	Total assets
	Ratio
	ROA¹
	Adjusted for Deferred Taxes
	Selected Financial Data (USD $ in thousands)
	Adjusted net income attributable to Accenture plc
	Adjusted total assets
	Ratio
	Adjusted ROA²

Based on: 10-K (filing date: 2018-10-24), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-30), 10-K (filing date: 2014-10-24), 10-K (filing date: 2013-10-29).

2018 Calculations

¹ ROA = 100 × Net income attributable to Accenture plc ÷ Total assets
= 100 × hidden ÷ hidden = hidden

² Adjusted ROA = 100 × Adjusted net income attributable to Accenture plc ÷ Adjusted total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Accenture PLC's adjusted ROA deteriorated from 2016 to 2017 but then slightly improved from 2017 to 2018.

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Analysis of Income Taxes

Income Tax Accounting Policy

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Analyst Adjustments: Removal of Deferred Taxes

Accenture PLC, Financial Data: Reported vs. Adjusted

Adjusted Ratios: Removal of Deferred Taxes (Summary)

Accenture PLC, Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)