What is the second setup step for IFRS CTA reporting on the Income Statement?

• A. Update the seeded FCCS_ CICTA account Redirection Account attribute with an Income Statement account.
• B. Create a new CTA asset.
• C. Change the CTA to Net Income.
• D. Enable CTA suppression.

Answer: (A)

In IFRS CTA reporting, the key step after enabling the feature is to route the current tax allocations to the correct lines on the Income Statement. The second setup step is to update the Redirection Account attribute on the seeded FCCS_CICTA account so it points to the appropriate Income Statement account. This mapping tells the system exactly which Income Statement line item should receive the redirected tax amounts, ensuring the CTA postings appear where IFRS expects them (for example, into the proper tax expense or tax provision accounts).

The other options don’t fit the required setup flow for Income Statement reporting. Creating a new CTA asset relates to balance sheet elements rather than directing Income Statement postings. There isn’t a standard setting to change CTAs to “Net Income,” and enabling CTA suppression would hide or disable the CTA postings rather than configure where they land on the Income Statement.