What Are Corporate Offsets?
Company offsets are used to cover costs that are company specific and are added as extra deductions for regime tax calculations. Their overall impact is reflected under 'corporate effects.'
How to Enable Corporate Offsets
To activate corporate offsets in your Lens Upstream valuation, you must:
Filter to a company (e.g. Shell) or a company + country/regime (e.g. Shell UK)
Click Edit Assumptions
Toggle Corporate offsets to "On"
Click Apply
When the Corporate Offsets toggle becomes available
Corporate offsets are only available at the company level (e.g. Shell) or at the company + country/regime level (e.g. Shell UK).
If you filter down to a subset of assets, the toggle will disappear from edit assumptions and offsets will be switched off. We can’t accurately apportion company-level effects to individual assets.
When to expect the Corporate Offsets toggle to remain active
Just like other options in Edit Assumptions:
Once corporate offsets are switched on, they will stay on until you end your session or change the filter to a company subset of assets, or if you remove the company filter
If you enable corporate offsets while viewing Harbour UK, and then switch to Shell UK, the toggle will remain active.
Where to view Corporate Offsets in the valuation
When the toggle is switched on, then if there are corporate offsets, you’ll see the
Corporate offsets has changed from "excluded" to "included". The values within the Summary by economics card will also update to reflect corporate offsets.
You can also view the corporate offsets in any of the company regime calc files.
