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Reviewing the deferred tax rollforward

Tax Provision calculates a detailed deferred tax amount and deferred tax provision. Deferred taxes and provisions are calculated by legal entity and temporary difference. Tax Provision is set up to maintain and automate, where possible, the rollforward of each legal entity’s detailed gross temporary differences by disclosure category. Beginning of year gross temporary differences are rolled over from the prior year end. These values are then adjusted for current year adjustments, return to provision, and various other automated and manual adjustments. Tax Provision calculates the cumulative translation amount by temporary difference for legal entities that use a different functional currency than the currency used for consolidated reporting.

Understanding Elements for deferred tax rollforward

The Net elements for deferred tax rollforward represent the after-tax value of the related Grs elements.

Deferred Tax Rollforward elements

  • NetRBOY_ASC—Regional BOY Deferred Tax Asset/(Liability)

    This column reflects the beginning of year deferred tax asset / liability. This balance is equal to the amount in the beginning of year gross temporary difference column multiplied by the applicable beginning of year regional deferred tax rate and/or by the beginning of year apportionment factor.

  • NetRPY_ASC— Regional Consolidation Adj. – BOY Impact

    This column represents the consolidation group adjustment for the beginning of year deferred tax amounts.

  • NetRBOYA_ASC—Regional BOY Deferred Tax Asset/(Liability) - As Adjusted

    This is a subtotal of the beginning of year balances plus the prior year adjustments.

  • NetRCY_ASC—Regional Current Year

    This column represents the tax impact of the current year temporary differences that are used in the calculation of the current provision. This balance equals the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. Since the tax impact of these adjustments is reflected in the current provision, this is not reflected in the effective tax rate.

  • NetRPYAdjDfd_ASC—Regional Prior Year Adjustments - Deferred Only Impact

    This column represents the tax impact of the activity posted in the prior year adjustments column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This is treated as a deferred provision only adjustment, which means that this adjustment is part of the deferred provision and is also reflected as an adjustment in the effective tax rate report.

  • NetRRTPDfd_ASC—Regional RTP - Deferred Only Impact

    This column represents the tax impact of the activity posted into the return to provision column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This is treated as a deferred provision only adjustment, which means that this adjustment is part of the deferred provision and is also reflected as an adjustment on the effective tax rate report.

  • NetRRARDfd_ASC—Regional RAR - Deferred Only Impact

    This column represents the tax impact of the activity posted into the Revenue Agent’s Report (RAR) column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This is treated as a deferred provision only adjustment, which means that this adjustment is part of the deferred provision and is also reflected as an adjustment on the effective tax rate report.

  • NetRCurDfd_ASC—Regional Other Adjustments Current and Deferred

    This column represents the tax impact of the activity posted into the Other Adjustments - Current and Deferred column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This adjustment impacts the deferred provision and the current provision in an equal and opposite amount in an additional provision item.

  • NetRDfd_ASC—Regional Other Adjustments - Deferred Only

    This column represents the tax impact of the activity posted into the Other Adjustments - Deferred Only column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This is treated as a deferred provision only adjustment, which means that this adjustment is part of the deferred provision and is also reflected as an adjustment in the effective tax rate report.

  • NatRTrfrCurDfd_ASC—Regional Transfers - Current and Deferred Impact

    This column represents the tax impact of the activity posted into the Transfers - Current and Deferred column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This adjustment impacts the deferred provision and the current provision in an equal and opposite amount in an additional provision item.

  • NetRTrfrDfd_ASC— Regional Consolidation Adj. – P&L Impact

    This column represents the consolidation group adjustment for the current year deferred tax amounts.

  • MSP_NetRCYGrpBOYAdj_ASC—Regional Adjustment to BOY Deferred Tax from New Entity - P&L Impact

    This column represents the tax impact of entities being added or removed from the regional group for the current year.

  • NetRUDiff_ASC—Regional Unexplained - Impact Provision

    This column impacts the total Regional level deferred tax balance. It is calculated by multiplying the gross unexplained - impact provision amount by the regional current year tax rate and/or by the current year apportionment factor.

  • NetRRCBOY_ASC—Regional Deferred Tax Impact - Change in Tax Rates BOY

    This column represents the impact of the beginning balance on the changes in the deferred tax rates from the end of the period to the beginning of the period. The beginning of year regional deferred tax rate is applied to the beginning of year balance.

  • NetRRCCY_ASC—Regional Deferred Tax Impact - Change in Tax Rates CY

    This column represents the impact of the current year activity by the difference between the current year tax rate and end of year regional deferred rate.

  • MSP_NetRAFCBOY_ASC—Regional Deferred Tax Impact - Change in Apportionment Factors BOY

    This column represents the impact of the beginning balance on the changes in the apportionment factors from the end of the period to the beginning of the period. The beginning of year apportionment is applied to the beginning of year balance.

  • MSP_NetRAFCCY_ASC—Regional Deferred Tax Impact - Change in Apportionment Factors CY

    This column represents the impact of the current year activity by the difference between the current year apportionment factor and end of year apportionment factors.

  • NetRRCAcqP_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ PRIOR

    This element is not calculated as the amount is populated by the period-end rollover. The amount in NetRRCAcqC_ASC—Deferred Tax Impact – Change in Tax Rates ACQ CUR is copied to this element and added to any amount already in this element from the previous month.

  • NetRRCAcqC_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ CUR

    This element is not calculated as the amount input to the Acquisitions input app (RA0303) in NetRRCAcqC_ASC flows directly to the regional deferred tax rollforward.

  • NetRRCAcqT_ASC—Regional Deferred Tax Impact - Change in Tax Rates TOT ACQ

    This is the sum of NetRRCAcqP_ASC and NetRRCAcqC_ASC and represents adjustments to the regional deferred tax expense in the prior and current period as a result of acquisitions.

  • MSP_NetRRC_ASC—Regional Deferred Tax Impact - Change in Tax Rates

    This is the sum of NetRRCBOY_ASC, NetRRCCY_ASC, MSP_NetRAFCBOY_ASC, MSP_NetRAFCCY_ASC, and NetRRCAcqT_ASC, and represents the total regional deferred tax expense related to tax rate change.

  • MSP_NetRTDP_ASC—Regional Total Deferred Provision

    This column is the sum of all previous columns, which calculates the deferred provision. All remaining columns do not impact the deferred provision but do impact the deferred tax end of year balance.

  • NetRAcqPR_ASC—Regional Acquisitions Prior

    This element is not calculated as the amount is populated by the period-end rollover. The amount in NetRAcqCur_ASC—Regional Acquisitions Net is copied to this element and added to any amount already in this element from the previous month.

  • NetRAcqCur_ASC—Regional Acquisitions Net

    This element is not calculated as the amount input to the Acquisitions input app (RA0303) in NetRAcqCur_ASC flows directly to the regional deferred tax rollforward.

  • NetRAcq_ASC—Regional Acquisitions

    This is the sum of NetRAcqPR_ASC and NetRAcqCur_ASC and represents total acquisitions.

  • NetRRCAcqPR_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ PRIOR Reversal

    This element is the amount in NetRRCAcqP_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ PRIOR element multiplied by -1.

  • NetRRCAcqCR_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ CUR Reversal

    This element is the amount in NetRRCAcqC_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ CUR element multiplied by -1.

  • NetRRCAcqTR_ASC—Regional Deferred Tax Impact - Change in Tax Rates TOT ACQ Reversal

    This is the sum of NetRRCAcqPR_ASC and NetRRCAcqCR_ASC and represents the total reversal of the adjustment to the regional deferred tax expense in the prior and current period as a result of acquisitions.

  • NetRDisp_ASC—Regional Disposals

    This column impacts the end of year deferred tax balance. It is calculated by multiplying the Disposals column in the gross temporary difference by the current year regional deferred tax rate and/or by the current year apportionment factor.

  • NetRNPOCI_ASC—Regional Non-Provision - Other Comprehensive Income

    This column impacts the end of year deferred tax balance. It is calculated by multiplying the non-provision OCI column in the gross temporary difference by the current year regional deferred tax rate and/or by the current year apportionment factor.

  • NetRRTPNPOCIDfd_ASC—Regional RTP – OCI

    This column represents the after-tax current year true-up for those accounts identified as OCI from the Return to Provision input app (SA0101G/SA0101S). It is calculated by multiplying the gross temporary difference column by the regional current year tax rate and/or by the current year apportionment factor.

  • NetRNPOCIOth_ASC—Regional Consolidation Adj. – OCI

    This column represents the consolidation group adjustment for the OCI deferred tax amounts.

  • MSP_NetRNPOCIGrpBOYAdj_ASC—MSP_NetRNPOCIGrpBOYAdj_ASC

    This column represents the tax impact on OCI items of entities being added or removed from the regional group for the current year.

  • NetRNPOCIRCBOY_ASC—Regional Non-Provision - OCI - Change in Tax Rates BOY

    This column represents the impact of the beginning balance on the changes in the deferred tax rates from the end of the period to the beginning of the period. The beginning of year regional deferred tax rate is applied to the beginning of year balance.

  • NetRNPOCIRCCY_ASC—Regional Non-Provision - OCI - Change in Tax Rates CY

    This column represents the impact of the current year activity by the difference between the current year tax rate and end of year regional deferred rate.

  • MSP_NetRNPOCIAFCBOY_ASC—Regional Non-Provision - OCI - Change in Apportionment Factors BOY

    This column represents the impact of the beginning balance on the changes in the apportionment factors from the end of the period to the beginning of the period. The beginning of year apportionment is applied to the beginning of year balance.

  • MSP_NetRNPOCIAFCCY_ASC—Regional Non-Provision - OCI - Change in Apportionment Factors CY

    This column represents the impact of the current year activity by the difference between the current year apportionment factor and end of year apportionment factors.

  • MSP_NetRNPOCIRCT_ASC—Regional Non-Provision - OCI - Change in Tax Rates

    This is the sum of NetRNPOCIRCBOY_ASC, NetRNPOCIRCCY_ASC, MSP_NetRNPOCIAFCBOY_ASC, and MSP_NetRNPOCIAFCCY_ASC, and represents the total regional deferred tax expense related to tax rate change.

  • MSP_NetRNPOCIT_ASC—Regional Non-Provision - OCI Total

    Total non-provision OCI items.

  • NetRNP123_ASC—Regional Non Provision - Stock Based Compensation

    This column impacts the end of year deferred tax balance. It is calculated by multiplying the non-provision Stock Based Compensation column in the gross temporary difference by the current year regional deferred tax rate and/or by the current year apportionment factor.

  • NetRNPOth_ASC—Regional Non Provision - Other

    This column impacts the end of year deferred tax balance. It is calculated by multiplying the non-provision Other column in the gross temporary difference by the current year regional deferred tax rate and/or by the current year apportionment factor.

  • NetRRTPNPEqDfd_ASC—Regional RTP – Equity

    This column represents the after-tax current year true-up for those accounts identified as Equity from the Return to Provision input app (SA0101G/SA010S). It is calculated by multiplying the gross temporary column by the regional current year tax rate and/or by the current year apportionment factor.

  • NetRNPEqOth_ASC—Regional Consolidation Adj. - Equity Impact

    This column represents the consolidation group adjustment for the Equity deferred tax amounts.

  • MSP_NetRNPEqGrpBOYAdj_ASC—Regional Adjustment to BOY Deferred Tax from New Entity - Equity Impact

    This column represents the tax impact on Equity items of entities being added or removed from the regional group for the current year.

  • NetRUDiffEq_ASC—Regional Unexplained - Impact Equity

    This column impacts the total Regional level deferred tax balance. It is calculated by multiplying the gross unexplained - impact provision amount by the regional current year tax rate and/or by the current year apportionment factor.

  • NetRNPEqRCBOY_ASC—Regional Non-Provision - Equity - Change in Tax Rates BOY

    This column represents the impact of the beginning balance on the changes in the deferred tax rates from the end of the period to the beginning of the period. The beginning of year regional deferred tax rate is applied to the beginning of year balance.

  • NetRNPEqRCCY_ASC—Regional Non-Provision - Equity - Change in Tax Rates CY

    This column represents the impact of the current year activity by the difference between the current year tax rate and end of year regional deferred rate.

  • MSP_NetRNPEqAFCBOY_ASC—Regional Non-Provision - Equity - Change in Apportionment Factors BOY

    This column represents the impact of the beginning balance on the changes in the apportionment factors from the end of the period to the beginning of the period. The beginning of year apportionment is applied to the beginning of year balance.

  • MSP_NetRNPEqAFCCY_ASC—Regional Non-Provision - Equity - Change in Apportionment Factors CY

    This column represents the impact of the current year activity by the difference between the current year apportionment factor and end of year apportionment factors.

  • MSP_NetRNPEqRCT_ASC—Regional Non-Provision - Equity - Change in Tax Rates

    This is the sum of NetRNPEqRCBOY_ASC, NetRNPEqRCCY_ASC, MSP_NetRNPEqAFCBOY_ASC, and MSP_NetRNPEqAFCCY_ASC, and represents the total regional deferred tax expense related to tax rate change.

  • NetRCTABOY_ASC—Regional CTA - BOY

    This column appears when viewing a translated currency for the entity. It is calculated on the difference between the beginning of year deferred tax asset / (liability) translated at the beginning of year spot rate and the end of year average rate.

  • NetRCTACYR_ASC—Regional CTA - CYr

    This column appears when viewing a translated currency for the entity. It is calculated on the difference between the end of year deferred tax asset / (liability) is translated at the end of year spot rate, the current year activity related to the deferred tax asset / (liability) is based on the average rate and the end of year average rate.

  • MSP_NetRCTAT_ASC—Regional CTA

    Total CTA for deferred tax.

  • MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset / (Liability)

    The deferred tax balance at the end of the year. This symbol is calculated and is the sum of the above symbols.

Deferred Tax Rollforward - Scheduling elements

The following scheduling elements appear in the report:

  • NetREOY1_ASC—Regional Balance Reversing in Year 1

    This column represents the deferred tax balance reversing in the first year. It is calculated by multiplying the gross tax balance reversing in year 1 by the regional scheduling year 1 tax rate and/or by the scheduling year 1 apportionment factor.

  • NetREOY2_ASC—Regional Balance Reversing in Year 2

    This column represents the deferred tax balance reversing in the second year. It is calculated by multiplying the gross tax balance reversing in year 2 by the regional scheduling year 2 tax rate and/or by the scheduling year 2 apportionment factor.

  • NetREOY3_ASC—Regional Balance Reversing in Year 3

    This column represents the deferred tax balance reversing in the third year. It is calculated by multiplying the gross tax balance reversing in year 3 by the regional scheduling year 3 tax rate and/or by the scheduling year 3 apportionment factor.

  • NetREOY4_ASC—Regional Balance Reversing in Year 4

    This column represents the deferred tax balance reversing in the fourth year. It is calculated by multiplying the gross tax balance reversing in year 4 by the regional scheduling year 4 tax rate and/or by the scheduling year 4 apportionment factor.

  • NetREOY5_ASC—Regaional Balance Reversing in Year 5

    This column represents the deferred tax balance reversing in the fifth year. It is calculated by multiplying the gross tax balance reversing in year 5 by the regional scheduling year 5 tax rate and/or by the scheduling year 5 apportionment factor.

  • NetREOY5ConsAdj—Regional Consolidation Adjustment - Scheduling Impact

    This column represents the consolidation group adjustment for the deferred tax scheduling amounts.

  • NetRTYr_ASC—Total Balance Reversing Years

    This column represents the total amount reversing over the five-year period. This symbol is calculated and is the sum of the above symbols.

Deferred Tax Rollforward report (SA0401S)

Tax Provision automatically calculates the deferred tax rollforward based on the values in the Temporary Difference input app and the regional tax rates. The Tax Administrator designates temporary difference as either current or non-current in order to correctly classify the resulting deferred tax asset / (liability) on the deferred tax report and the income tax disclosure. Tax Provision automatically classifies positive values as assets and negative values as liabilities.

Note: For more information on reports, see "Working with reports".

The deferred tax rollforward shows the current period deferred tax activity for an entity for temporary differences, net operating losses, tax credits, and valuation allowances.

This report contains tax-affected data for the accounts that appear in the "Temporary Differences input app (SS0301)".

To review the regional Deferred Tax Rollforward report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Separate
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”. 

  5. Click SA0401S - Deferred Tax Rollforward.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see Temporary Differences Input app (SS0301).

Deferred Tax Rollforward - Scheduling report (SA0402S)

Entities using the deferred tax scheduling methodology use the same format and calculations as the deferred tax rollforward with the following differences:

The end of period deferred tax balance is based on the sum of the deferred tax balances for each of the scheduled years. Since the tax rates may differ during the years over which the temporary difference is expected to reverse, the ending balance is a sum of the calculated deferred tax balances for each year.

The tax rate change is based on the average deferred tax rate calculated by dividing the ending deferred tax balance as calculated by the end of period gross temporary difference and not on the deferred tax rates entered in the Tax Rates input app (XRC0201 or XRC1201).

Note: For more information on reports, see "Working with reports".

This report contains the same Elements (across) as the Deferred Tax Rollforward report (SA0401S) with the scheduling elements included as additional columns.

To review the regional Deferred Tax Rollforward - Scheduling report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual.
  3. Expand Separate
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0402S - Deferred Tax Rollforward - Scheduling.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see "Temporary Differences input app (SS0301)".

Deferred Tax Classification report (SA0403S)

This report shows the breakdown of the regional deferred tax asset / (liabilities) into one of the following classifications:

  • Regional Deferred Tax Asset - Current
  • Regional Deferred Tax Liability - Current
  • Regional Deferred Tax Asset - Non-Current 
  • Regional Deferred Tax Liability - Non-current

The classification of these items is based on: 

  • The “Current or Non-Current” column. This setting determines whether the balance is classified in the current or non-current columns.
  • The balance in symbol MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability). If this balance is positive, the amount is classified as an asset. If this balance is negative, the amount is classified as a liability.

The regional deferred tax ending balance is considered an asset if:

  • For all temporary differences except valuation allowances:

    MSP_NetREOY_ASC > 0 or MSP_NetREOY_ASC = 0 and NetRBOYA_ASC > 0 or MSP_NetREOY_ASC = 0, NetRBOYA_ASC = 0, and NetRBOY_ASC > 0

  • For valuation allowance accounts, the amount is multiplied by -1:

    MSP_NetREOY_ASC < 0 or MSP_NetREOY_ASC = 0 and NetRBOYA_ASC < 0 or MSP_NetREOY_ASC = 0, NetRBOYA_ASC = 0, and NetRBOY_ASC < 0

Otherwise, the ending balance is considered a liability.

Note: For more information on reports, see "Working with reports".

This report contains the following symbols in the Elements dimension (across):

  • NetRCA_ASC—Regional Deferred Tax Asset - Current

    This column represents the amount of regional deferred tax classified as current asset.

  • NetRCL_ASC—Regional Deferred Tax Liability - Current

    This column represents the amount of regional deferred tax classified as a current liability.

  • NetRNA_ASC—Regional Deferred Tax Asset - Non-Current

    This column represents the amount of regional deferred tax classified as a non-current asset.

  • NetRNL_ASC—Regional Deferred Tax Liability - Non-Current

    This column represents the amount of regional deferred tax classified as a non-current liability.

  • NetRTot_ASC—Regional Total

    This column represents the regional total classification.

To review the Deferred Tax Classification report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Separate
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0403S - Deferred Tax Classification.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see Deferred Tax Rollforward report (SA0401S).

Deferred Tax - for Tax Account Rollforward report (SA0404S)

This report shows the breakdown of the deferred tax rollforward into further detail for each Element, for use in Tax Account Rollforward mappings.

Note: For more information on reports, see "Working with reports".

The deferred tax rollforward is classified as one of the following classifications:

  • Regional Deferred Tax Asset - Current
  • Regional Deferred Tax Liability - Current
  • Regional Deferred Tax Asset - Non-Current
  • Regional Deferred Tax Liability - Non-Current

The classification of these items is based on:

  • The “Current or Non-Current” column. This setting determines whether the balance is classified in the current or non-current columns.
  • The balance in symbol MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability). If this balance is positive, the amount is classified as an asset. If this balance is negative, the amount is classified as a liability.

The deferred tax ending balance is considered an asset for all deferred tax accounts except valuation allowances if the value in element MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability) is greater than zero. For the valuation allowance accounts, the balance is treated as an offset to the asset balance if the value in element MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability) is less than zero. Otherwise, the ending balance is considered a liability.

Administrators can use the Current and Deferred Tax editor to indicate the account level at which the classification of the deferred tax balances is determined. The highest-level account selected is used as the classification level. For example:

  • If you want deferred tax balances to be classified at each temporary difference, select a classification level for each temporary difference account.
  • If you want deferred tax balances to be classified at the total GAAP to STAT temporary difference level, select the classification level at the GAAP to STAT parent temporary difference account. This overrides the classification level setting at the temporary difference account level below the parent level GAAP to STAT temporary difference.

For more information, see the Longview Tax Administrator’s Guide.

In addition to the above classification processes, Tax Provision also reviews the classification of balances between the end of the period and the beginning of the year to determine if there has been a change in the overall classification of deferred balances (i.e. current asset at beginning of year is a current liability at the end of the period). If there is a classification change, the reclass elements provide the adjustment that is mapped to the Tax Account Rollforward to automate the reclassification adjustment (reflected in the Reclassification of Deferred Tax Accounts row of the tax account rollforward).

This report contains the following symbols in the Elements dimension (across):

  • MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability)

    The regional deferred tax balance at the end of the year.

  • MSP_NetRClass_ASC—Regional National Tax Classification

    The parent element of the classified deferred tax rollforwards for Regional Deferred Tax Asset - Current, Regional Deferred Tax Liability - Current, Regional Deferred Tax Asset - Non-Current, and Regional Deferred Tax Liability - Non-current, along with their related beginning of year reclass adjustments.

To review the Deferred Tax - for Tax Account Rollforward report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Separate
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0404S - Deferred Tax - for Tax Account Rollforward.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see Deferred Tax Rollforward report (SA0401S).

Deferred Tax Rollforward report (SA0401G)

Tax Provision automatically calculates the deferred tax rollforward based on the values in the Temporary Difference input app and the regional tax rates. The Tax Administrator designates temporary difference as either current or non-current in order to correctly classify the resulting deferred tax asset / (liability) on the deferred tax report and the income tax disclosure. Tax Provision automatically classifies positive values as assets and negative values as liabilities.

Note: For more information on reports, see "Working with reports".

The deferred tax rollforward shows the current period deferred tax activity for an entity for temporary differences, net operating losses, tax credits, and valuation allowances.

This report contains tax-affected data for the accounts that appear in the "Temporary Differences input app (SS0301)".

To review the regional Deferred Tax Rollforward report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual.
  3. Expand Group
  4. Use the drop-down list or the symbol selector to select the appropriate region.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0401G - Deferred Tax Rollforward.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see "Temporary Differences input app (SG0301)".

Deferred Tax Rollforward - Scheduling report (SA0402G)

Entities using the deferred tax scheduling methodology use the same format and calculations as the deferred tax rollforward with the following differences:

The end of period deferred tax balance is based on the sum of the deferred tax balances for each of the scheduled years. Since the tax rates may differ during the years over which the temporary difference is expected to reverse, the ending balance is a sum of the calculated deferred tax balances for each year.

The tax rate change is based on the average deferred tax rate calculated by dividing the ending deferred tax balance as calculated by the end of period gross temporary difference and not on the deferred tax rates entered in the Tax Rates input app (XRC0201 or XRC1201).

Note: For more information on reports, see "Working with reports".

This report contains the same Elements (across) as the Deferred Tax Rollforward report (SA0401G) with the scheduling elements included as additional columns.

To review the regional Deferred Tax Rollforward - Scheduling report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Group
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0402G - Deferred Tax Rollforward - Scheduling.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see "Temporary Differences input app (SG0301)".

Deferred Tax Classification report (SA0403G)

This report shows the breakdown of the regional deferred tax asset / (liabilities) into one of the following classifications:

  • Regional Deferred Tax Asset - Current
  • Regional Deferred Tax Liability - Current
  • Regional Deferred Tax Asset - Non-Current
  • Regional Deferred Tax Liability - Non-current

The classification of these items is based on: 

  • The “Current or Non-Current” column. This setting determines whether the balance is classified in the current or non-current columns.
  • The balance in symbol MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability). If this balance is positive, the amount is classified as an asset. If this balance is negative, the amount is classified as a liability.

The regional deferred tax ending balance is considered an asset if:

  • For all temporary differences except valuation allowances:

    MSP_NetREOY_ASC > 0 or MSP_NetREOY_ASC = 0 and NetRBOYA_ASC > 0 or MSP_NetREOY_ASC = 0, NetRBOYA_ASC = 0, and NetRBOY_ASC > 0

  • For valuation allowance accounts, the amount is multiplied by -1:

    MSP_NetREOY_ASC < 0 or MSP_NetREOY_ASC = 0 and NetRBOYA_ASC < 0 or MSP_NetREOY_ASC = 0, NetRBOYA_ASC = 0, and NetRBOY_ASC < 0

Otherwise, the ending balance is considered a liability.

Note: For more information on reports, see "Working with reports".

This report contains the following symbols in the Elements dimension (across):

  • NetRCA_ASC—Regional Deferred Tax Asset - Current

    This column represents the amount of regional deferred tax classified as current asset.

  • NetRCL_ASC—Regional Deferred Tax Liability - Current

    This column represents the amount of regional deferred tax classified as a current liability.

  • NetRNA_ASC—Regional Deferred Tax Asset - Non-Current

    This column represents the amount of regional deferred tax classified as a non-current asset.

  • NetRNL_ASC—Regional Deferred Tax Liability - Non-Current

    This column represents the amount of regional deferred tax classified as a non-current liability.

  • NetRTot_ASC—Regional Total

    This column represents the regional total classification.

To review the Deferred Tax Classification report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Group
  4. Use the drop-down list or the symbol selector to select the appropriate region.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0403G - Deferred Tax Classification.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see Deferred Tax Rollforward report (SA0401G).

Deferred Tax - for Tax Account Rollforward report (SA0404G)

This report shows the breakdown of the deferred tax rollforward into further detail for each Element, for use in Tax Account Rollforward mappings.

Note: For more information on reports, see "Working with reports".

The deferred tax rollforward is classified as one of the following classifications:

  • Regional Deferred Tax Asset - Current
  • Regional Deferred Tax Liability - Current
  • Regional Deferred Tax Asset - Non-Current
  • Regional Deferred Tax Liability - Non-Current

The classification of these items is based on:

  • The “Current or Non-Current” column. This setting determines whether the balance is classified in the current or non-current columns.
  • The balance in symbol MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability). If this balance is positive, the amount is classified as an asset. If this balance is negative, the amount is classified as a liability.

The deferred tax ending balance is considered an asset for all deferred tax accounts except valuation allowances if the value in element MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability) is greater than zero. For the valuation allowance accounts, the balance is treated as an offset to the asset balance if the value in element MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability) is less than zero. Otherwise, the ending balance is considered a liability.

Administrators can use the Current and Deferred Tax editor to indicate the account level at which the classification of the deferred tax balances is determined. The highest level account selected is used as the classification level. For example:

  • If you want deferred tax balances to be classified at each temporary difference, select a classification level for each temporary difference account.
  • If you want deferred tax balances to be classified at the total GAAP to STAT temporary difference level, select the classification level at the GAAP to STAT parent temporary difference account. This overrides the classification level setting at the temporary difference account level below the parent level GAAP to STAT temporary difference.

For more information, see the Longview Tax Administrator’s Guide.

In addition to the above classification processes, Tax Provision also reviews the classification of balances between the end of the period and the beginning of the year to determine if there has been a change in the overall classification of deferred balances (i.e. current asset at beginning of year is a current liability at the end of the period). If there is a classification change, the reclass elements provide the adjustment that is mapped to the Tax Account Rollforward to automate the reclassification adjustment (reflected in the Reclassification of Deferred Tax Accounts row of the tax account rollforward).

This report contains the following symbols in the Elements dimension (across):

  • MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability)

    The regional deferred tax balance at the end of the year.

  • MSP_NetRClass_ASC—Regional National Tax Classification

    The parent element of the classified deferred tax rollforwards for Regional Deferred Tax Asset - Current, Regional Deferred Tax Liability - Current, Regional Deferred Tax Asset - Non-Current, and Regional Deferred Tax Liability - Non-current, along with their related beginning of year reclass adjustments.

To review the Deferred Tax - for Tax Account Rollforward report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Group
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0404G - Deferred Tax - for Tax Account Rollforward.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see Deferred Tax Rollforward report (SA0401G).
Published:

Reviewing the deferred tax rollforward

Tax Provision calculates a detailed deferred tax amount and deferred tax provision. Deferred taxes and provisions are calculated by legal entity and temporary difference. Tax Provision is set up to maintain and automate, where possible, the rollforward of each legal entity’s detailed gross temporary differences by disclosure category. Beginning of year gross temporary differences are rolled over from the prior year end. These values are then adjusted for current year adjustments, return to provision, and various other automated and manual adjustments. Tax Provision calculates the cumulative translation amount by temporary difference for legal entities that use a different functional currency than the currency used for consolidated reporting.

Understanding Elements for deferred tax rollforward

The Net elements for deferred tax rollforward represent the after-tax value of the related Grs elements.

Deferred Tax Rollforward elements

  • NetRBOY_ASC—Regional BOY Deferred Tax Asset/(Liability)

    This column reflects the beginning of year deferred tax asset / liability. This balance is equal to the amount in the beginning of year gross temporary difference column multiplied by the applicable beginning of year regional deferred tax rate and/or by the beginning of year apportionment factor.

  • NetRPY_ASC— Regional Consolidation Adj. – BOY Impact

    This column represents the consolidation group adjustment for the beginning of year deferred tax amounts.

  • NetRBOYA_ASC—Regional BOY Deferred Tax Asset/(Liability) - As Adjusted

    This is a subtotal of the beginning of year balances plus the prior year adjustments.

  • NetRCY_ASC—Regional Current Year

    This column represents the tax impact of the current year temporary differences that are used in the calculation of the current provision. This balance equals the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. Since the tax impact of these adjustments is reflected in the current provision, this is not reflected in the effective tax rate.

  • NetRPYAdjDfd_ASC—Regional Prior Year Adjustments - Deferred Only Impact

    This column represents the tax impact of the activity posted in the prior year adjustments column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This is treated as a deferred provision only adjustment, which means that this adjustment is part of the deferred provision and is also reflected as an adjustment in the effective tax rate report.

  • NetRRTPDfd_ASC—Regional RTP - Deferred Only Impact

    This column represents the tax impact of the activity posted into the return to provision column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This is treated as a deferred provision only adjustment, which means that this adjustment is part of the deferred provision and is also reflected as an adjustment on the effective tax rate report.

  • NetRRARDfd_ASC—Regional RAR - Deferred Only Impact

    This column represents the tax impact of the activity posted into the Revenue Agent’s Report (RAR) column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This is treated as a deferred provision only adjustment, which means that this adjustment is part of the deferred provision and is also reflected as an adjustment on the effective tax rate report.

  • NetRCurDfd_ASC—Regional Other Adjustments Current and Deferred

    This column represents the tax impact of the activity posted into the Other Adjustments - Current and Deferred column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This adjustment impacts the deferred provision and the current provision in an equal and opposite amount in an additional provision item.

  • NetRDfd_ASC—Regional Other Adjustments - Deferred Only

    This column represents the tax impact of the activity posted into the Other Adjustments - Deferred Only column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This is treated as a deferred provision only adjustment, which means that this adjustment is part of the deferred provision and is also reflected as an adjustment in the effective tax rate report.

  • NatRTrfrCurDfd_ASC—Regional Transfers - Current and Deferred Impact

    This column represents the tax impact of the activity posted into the Transfers - Current and Deferred column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the regional current year tax rate and/or by the current year apportionment factor. This adjustment impacts the deferred provision and the current provision in an equal and opposite amount in an additional provision item.

  • NetRTrfrDfd_ASC— Regional Consolidation Adj. – P&L Impact

    This column represents the consolidation group adjustment for the current year deferred tax amounts.

  • MSP_NetRCYGrpBOYAdj_ASC—Regional Adjustment to BOY Deferred Tax from New Entity - P&L Impact

    This column represents the tax impact of entities being added or removed from the regional group for the current year.

  • NetRUDiff_ASC—Regional Unexplained - Impact Provision

    This column impacts the total Regional level deferred tax balance. It is calculated by multiplying the gross unexplained - impact provision amount by the regional current year tax rate and/or by the current year apportionment factor.

  • NetRRCBOY_ASC—Regional Deferred Tax Impact - Change in Tax Rates BOY

    This column represents the impact of the beginning balance on the changes in the deferred tax rates from the end of the period to the beginning of the period. The beginning of year regional deferred tax rate is applied to the beginning of year balance.

  • NetRRCCY_ASC—Regional Deferred Tax Impact - Change in Tax Rates CY

    This column represents the impact of the current year activity by the difference between the current year tax rate and end of year regional deferred rate.

  • MSP_NetRAFCBOY_ASC—Regional Deferred Tax Impact - Change in Apportionment Factors BOY

    This column represents the impact of the beginning balance on the changes in the apportionment factors from the end of the period to the beginning of the period. The beginning of year apportionment is applied to the beginning of year balance.

  • MSP_NetRAFCCY_ASC—Regional Deferred Tax Impact - Change in Apportionment Factors CY

    This column represents the impact of the current year activity by the difference between the current year apportionment factor and end of year apportionment factors.

  • NetRRCAcqP_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ PRIOR

    This element is not calculated as the amount is populated by the period-end rollover. The amount in NetRRCAcqC_ASC—Deferred Tax Impact – Change in Tax Rates ACQ CUR is copied to this element and added to any amount already in this element from the previous month.

  • NetRRCAcqC_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ CUR

    This element is not calculated as the amount input to the Acquisitions input app (RA0303) in NetRRCAcqC_ASC flows directly to the regional deferred tax rollforward.

  • NetRRCAcqT_ASC—Regional Deferred Tax Impact - Change in Tax Rates TOT ACQ

    This is the sum of NetRRCAcqP_ASC and NetRRCAcqC_ASC and represents adjustments to the regional deferred tax expense in the prior and current period as a result of acquisitions.

  • MSP_NetRRC_ASC—Regional Deferred Tax Impact - Change in Tax Rates

    This is the sum of NetRRCBOY_ASC, NetRRCCY_ASC, MSP_NetRAFCBOY_ASC, MSP_NetRAFCCY_ASC, and NetRRCAcqT_ASC, and represents the total regional deferred tax expense related to tax rate change.

  • MSP_NetRTDP_ASC—Regional Total Deferred Provision

    This column is the sum of all previous columns, which calculates the deferred provision. All remaining columns do not impact the deferred provision but do impact the deferred tax end of year balance.

  • NetRAcqPR_ASC—Regional Acquisitions Prior

    This element is not calculated as the amount is populated by the period-end rollover. The amount in NetRAcqCur_ASC—Regional Acquisitions Net is copied to this element and added to any amount already in this element from the previous month.

  • NetRAcqCur_ASC—Regional Acquisitions Net

    This element is not calculated as the amount input to the Acquisitions input app (RA0303) in NetRAcqCur_ASC flows directly to the regional deferred tax rollforward.

  • NetRAcq_ASC—Regional Acquisitions

    This is the sum of NetRAcqPR_ASC and NetRAcqCur_ASC and represents total acquisitions.

  • NetRRCAcqPR_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ PRIOR Reversal

    This element is the amount in NetRRCAcqP_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ PRIOR element multiplied by -1.

  • NetRRCAcqCR_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ CUR Reversal

    This element is the amount in NetRRCAcqC_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ CUR element multiplied by -1.

  • NetRRCAcqTR_ASC—Regional Deferred Tax Impact - Change in Tax Rates TOT ACQ Reversal

    This is the sum of NetRRCAcqPR_ASC and NetRRCAcqCR_ASC and represents the total reversal of the adjustment to the regional deferred tax expense in the prior and current period as a result of acquisitions.

  • NetRDisp_ASC—Regional Disposals

    This column impacts the end of year deferred tax balance. It is calculated by multiplying the Disposals column in the gross temporary difference by the current year regional deferred tax rate and/or by the current year apportionment factor.

  • NetRNPOCI_ASC—Regional Non-Provision - Other Comprehensive Income

    This column impacts the end of year deferred tax balance. It is calculated by multiplying the non-provision OCI column in the gross temporary difference by the current year regional deferred tax rate and/or by the current year apportionment factor.

  • NetRRTPNPOCIDfd_ASC—Regional RTP – OCI

    This column represents the after-tax current year true-up for those accounts identified as OCI from the Return to Provision input app (SA0101G/SA0101S). It is calculated by multiplying the gross temporary difference column by the regional current year tax rate and/or by the current year apportionment factor.

  • NetRNPOCIOth_ASC—Regional Consolidation Adj. – OCI

    This column represents the consolidation group adjustment for the OCI deferred tax amounts.

  • MSP_NetRNPOCIGrpBOYAdj_ASC—MSP_NetRNPOCIGrpBOYAdj_ASC

    This column represents the tax impact on OCI items of entities being added or removed from the regional group for the current year.

  • NetRNPOCIRCBOY_ASC—Regional Non-Provision - OCI - Change in Tax Rates BOY

    This column represents the impact of the beginning balance on the changes in the deferred tax rates from the end of the period to the beginning of the period. The beginning of year regional deferred tax rate is applied to the beginning of year balance.

  • NetRNPOCIRCCY_ASC—Regional Non-Provision - OCI - Change in Tax Rates CY

    This column represents the impact of the current year activity by the difference between the current year tax rate and end of year regional deferred rate.

  • MSP_NetRNPOCIAFCBOY_ASC—Regional Non-Provision - OCI - Change in Apportionment Factors BOY

    This column represents the impact of the beginning balance on the changes in the apportionment factors from the end of the period to the beginning of the period. The beginning of year apportionment is applied to the beginning of year balance.

  • MSP_NetRNPOCIAFCCY_ASC—Regional Non-Provision - OCI - Change in Apportionment Factors CY

    This column represents the impact of the current year activity by the difference between the current year apportionment factor and end of year apportionment factors.

  • MSP_NetRNPOCIRCT_ASC—Regional Non-Provision - OCI - Change in Tax Rates

    This is the sum of NetRNPOCIRCBOY_ASC, NetRNPOCIRCCY_ASC, MSP_NetRNPOCIAFCBOY_ASC, and MSP_NetRNPOCIAFCCY_ASC, and represents the total regional deferred tax expense related to tax rate change.

  • MSP_NetRNPOCIT_ASC—Regional Non-Provision - OCI Total

    Total non-provision OCI items.

  • NetRNP123_ASC—Regional Non Provision - Stock Based Compensation

    This column impacts the end of year deferred tax balance. It is calculated by multiplying the non-provision Stock Based Compensation column in the gross temporary difference by the current year regional deferred tax rate and/or by the current year apportionment factor.

  • NetRNPOth_ASC—Regional Non Provision - Other

    This column impacts the end of year deferred tax balance. It is calculated by multiplying the non-provision Other column in the gross temporary difference by the current year regional deferred tax rate and/or by the current year apportionment factor.

  • NetRRTPNPEqDfd_ASC—Regional RTP – Equity

    This column represents the after-tax current year true-up for those accounts identified as Equity from the Return to Provision input app (SA0101G/SA010S). It is calculated by multiplying the gross temporary column by the regional current year tax rate and/or by the current year apportionment factor.

  • NetRNPEqOth_ASC—Regional Consolidation Adj. - Equity Impact

    This column represents the consolidation group adjustment for the Equity deferred tax amounts.

  • MSP_NetRNPEqGrpBOYAdj_ASC—Regional Adjustment to BOY Deferred Tax from New Entity - Equity Impact

    This column represents the tax impact on Equity items of entities being added or removed from the regional group for the current year.

  • NetRUDiffEq_ASC—Regional Unexplained - Impact Equity

    This column impacts the total Regional level deferred tax balance. It is calculated by multiplying the gross unexplained - impact provision amount by the regional current year tax rate and/or by the current year apportionment factor.

  • NetRNPEqRCBOY_ASC—Regional Non-Provision - Equity - Change in Tax Rates BOY

    This column represents the impact of the beginning balance on the changes in the deferred tax rates from the end of the period to the beginning of the period. The beginning of year regional deferred tax rate is applied to the beginning of year balance.

  • NetRNPEqRCCY_ASC—Regional Non-Provision - Equity - Change in Tax Rates CY

    This column represents the impact of the current year activity by the difference between the current year tax rate and end of year regional deferred rate.

  • MSP_NetRNPEqAFCBOY_ASC—Regional Non-Provision - Equity - Change in Apportionment Factors BOY

    This column represents the impact of the beginning balance on the changes in the apportionment factors from the end of the period to the beginning of the period. The beginning of year apportionment is applied to the beginning of year balance.

  • MSP_NetRNPEqAFCCY_ASC—Regional Non-Provision - Equity - Change in Apportionment Factors CY

    This column represents the impact of the current year activity by the difference between the current year apportionment factor and end of year apportionment factors.

  • MSP_NetRNPEqRCT_ASC—Regional Non-Provision - Equity - Change in Tax Rates

    This is the sum of NetRNPEqRCBOY_ASC, NetRNPEqRCCY_ASC, MSP_NetRNPEqAFCBOY_ASC, and MSP_NetRNPEqAFCCY_ASC, and represents the total regional deferred tax expense related to tax rate change.

  • NetRCTABOY_ASC—Regional CTA - BOY

    This column appears when viewing a translated currency for the entity. It is calculated on the difference between the beginning of year deferred tax asset / (liability) translated at the beginning of year spot rate and the end of year average rate.

  • NetRCTACYR_ASC—Regional CTA - CYr

    This column appears when viewing a translated currency for the entity. It is calculated on the difference between the end of year deferred tax asset / (liability) is translated at the end of year spot rate, the current year activity related to the deferred tax asset / (liability) is based on the average rate and the end of year average rate.

  • MSP_NetRCTAT_ASC—Regional CTA

    Total CTA for deferred tax.

  • MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset / (Liability)

    The deferred tax balance at the end of the year. This symbol is calculated and is the sum of the above symbols.

Deferred Tax Rollforward - Scheduling elements

The following scheduling elements appear in the report:

  • NetREOY1_ASC—Regional Balance Reversing in Year 1

    This column represents the deferred tax balance reversing in the first year. It is calculated by multiplying the gross tax balance reversing in year 1 by the regional scheduling year 1 tax rate and/or by the scheduling year 1 apportionment factor.

  • NetREOY2_ASC—Regional Balance Reversing in Year 2

    This column represents the deferred tax balance reversing in the second year. It is calculated by multiplying the gross tax balance reversing in year 2 by the regional scheduling year 2 tax rate and/or by the scheduling year 2 apportionment factor.

  • NetREOY3_ASC—Regional Balance Reversing in Year 3

    This column represents the deferred tax balance reversing in the third year. It is calculated by multiplying the gross tax balance reversing in year 3 by the regional scheduling year 3 tax rate and/or by the scheduling year 3 apportionment factor.

  • NetREOY4_ASC—Regional Balance Reversing in Year 4

    This column represents the deferred tax balance reversing in the fourth year. It is calculated by multiplying the gross tax balance reversing in year 4 by the regional scheduling year 4 tax rate and/or by the scheduling year 4 apportionment factor.

  • NetREOY5_ASC—Regaional Balance Reversing in Year 5

    This column represents the deferred tax balance reversing in the fifth year. It is calculated by multiplying the gross tax balance reversing in year 5 by the regional scheduling year 5 tax rate and/or by the scheduling year 5 apportionment factor.

  • NetREOY5ConsAdj—Regional Consolidation Adjustment - Scheduling Impact

    This column represents the consolidation group adjustment for the deferred tax scheduling amounts.

  • NetRTYr_ASC—Total Balance Reversing Years

    This column represents the total amount reversing over the five-year period. This symbol is calculated and is the sum of the above symbols.

Deferred Tax Rollforward report (SA0401S)

Tax Provision automatically calculates the deferred tax rollforward based on the values in the Temporary Difference input app and the regional tax rates. The Tax Administrator designates temporary difference as either current or non-current in order to correctly classify the resulting deferred tax asset / (liability) on the deferred tax report and the income tax disclosure. Tax Provision automatically classifies positive values as assets and negative values as liabilities.

Note: For more information on reports, see "Working with reports".

The deferred tax rollforward shows the current period deferred tax activity for an entity for temporary differences, net operating losses, tax credits, and valuation allowances.

This report contains tax-affected data for the accounts that appear in the "Temporary Differences input app (SS0301)".

To review the regional Deferred Tax Rollforward report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Separate
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”. 

  5. Click SA0401S - Deferred Tax Rollforward.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see Temporary Differences Input app (SS0301).

Deferred Tax Rollforward - Scheduling report (SA0402S)

Entities using the deferred tax scheduling methodology use the same format and calculations as the deferred tax rollforward with the following differences:

The end of period deferred tax balance is based on the sum of the deferred tax balances for each of the scheduled years. Since the tax rates may differ during the years over which the temporary difference is expected to reverse, the ending balance is a sum of the calculated deferred tax balances for each year.

The tax rate change is based on the average deferred tax rate calculated by dividing the ending deferred tax balance as calculated by the end of period gross temporary difference and not on the deferred tax rates entered in the Tax Rates input app (XRC0201 or XRC1201).

Note: For more information on reports, see "Working with reports".

This report contains the same Elements (across) as the Deferred Tax Rollforward report (SA0401S) with the scheduling elements included as additional columns.

To review the regional Deferred Tax Rollforward - Scheduling report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual.
  3. Expand Separate
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0402S - Deferred Tax Rollforward - Scheduling.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see "Temporary Differences input app (SS0301)".

Deferred Tax Classification report (SA0403S)

This report shows the breakdown of the regional deferred tax asset / (liabilities) into one of the following classifications:

  • Regional Deferred Tax Asset - Current
  • Regional Deferred Tax Liability - Current
  • Regional Deferred Tax Asset - Non-Current 
  • Regional Deferred Tax Liability - Non-current

The classification of these items is based on: 

  • The “Current or Non-Current” column. This setting determines whether the balance is classified in the current or non-current columns.
  • The balance in symbol MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability). If this balance is positive, the amount is classified as an asset. If this balance is negative, the amount is classified as a liability.

The regional deferred tax ending balance is considered an asset if:

  • For all temporary differences except valuation allowances:

    MSP_NetREOY_ASC > 0 or MSP_NetREOY_ASC = 0 and NetRBOYA_ASC > 0 or MSP_NetREOY_ASC = 0, NetRBOYA_ASC = 0, and NetRBOY_ASC > 0

  • For valuation allowance accounts, the amount is multiplied by -1:

    MSP_NetREOY_ASC < 0 or MSP_NetREOY_ASC = 0 and NetRBOYA_ASC < 0 or MSP_NetREOY_ASC = 0, NetRBOYA_ASC = 0, and NetRBOY_ASC < 0

Otherwise, the ending balance is considered a liability.

Note: For more information on reports, see "Working with reports".

This report contains the following symbols in the Elements dimension (across):

  • NetRCA_ASC—Regional Deferred Tax Asset - Current

    This column represents the amount of regional deferred tax classified as current asset.

  • NetRCL_ASC—Regional Deferred Tax Liability - Current

    This column represents the amount of regional deferred tax classified as a current liability.

  • NetRNA_ASC—Regional Deferred Tax Asset - Non-Current

    This column represents the amount of regional deferred tax classified as a non-current asset.

  • NetRNL_ASC—Regional Deferred Tax Liability - Non-Current

    This column represents the amount of regional deferred tax classified as a non-current liability.

  • NetRTot_ASC—Regional Total

    This column represents the regional total classification.

To review the Deferred Tax Classification report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Separate
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0403S - Deferred Tax Classification.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see Deferred Tax Rollforward report (SA0401S).

Deferred Tax - for Tax Account Rollforward report (SA0404S)

This report shows the breakdown of the deferred tax rollforward into further detail for each Element, for use in Tax Account Rollforward mappings.

Note: For more information on reports, see "Working with reports".

The deferred tax rollforward is classified as one of the following classifications:

  • Regional Deferred Tax Asset - Current
  • Regional Deferred Tax Liability - Current
  • Regional Deferred Tax Asset - Non-Current
  • Regional Deferred Tax Liability - Non-Current

The classification of these items is based on:

  • The “Current or Non-Current” column. This setting determines whether the balance is classified in the current or non-current columns.
  • The balance in symbol MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability). If this balance is positive, the amount is classified as an asset. If this balance is negative, the amount is classified as a liability.

The deferred tax ending balance is considered an asset for all deferred tax accounts except valuation allowances if the value in element MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability) is greater than zero. For the valuation allowance accounts, the balance is treated as an offset to the asset balance if the value in element MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability) is less than zero. Otherwise, the ending balance is considered a liability.

Administrators can use the Current and Deferred Tax editor to indicate the account level at which the classification of the deferred tax balances is determined. The highest-level account selected is used as the classification level. For example:

  • If you want deferred tax balances to be classified at each temporary difference, select a classification level for each temporary difference account.
  • If you want deferred tax balances to be classified at the total GAAP to STAT temporary difference level, select the classification level at the GAAP to STAT parent temporary difference account. This overrides the classification level setting at the temporary difference account level below the parent level GAAP to STAT temporary difference.

For more information, see the Longview Tax Administrator’s Guide.

In addition to the above classification processes, Tax Provision also reviews the classification of balances between the end of the period and the beginning of the year to determine if there has been a change in the overall classification of deferred balances (i.e. current asset at beginning of year is a current liability at the end of the period). If there is a classification change, the reclass elements provide the adjustment that is mapped to the Tax Account Rollforward to automate the reclassification adjustment (reflected in the Reclassification of Deferred Tax Accounts row of the tax account rollforward).

This report contains the following symbols in the Elements dimension (across):

  • MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability)

    The regional deferred tax balance at the end of the year.

  • MSP_NetRClass_ASC—Regional National Tax Classification

    The parent element of the classified deferred tax rollforwards for Regional Deferred Tax Asset - Current, Regional Deferred Tax Liability - Current, Regional Deferred Tax Asset - Non-Current, and Regional Deferred Tax Liability - Non-current, along with their related beginning of year reclass adjustments.

To review the Deferred Tax - for Tax Account Rollforward report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Separate
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0404S - Deferred Tax - for Tax Account Rollforward.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see Deferred Tax Rollforward report (SA0401S).

Deferred Tax Rollforward report (SA0401G)

Tax Provision automatically calculates the deferred tax rollforward based on the values in the Temporary Difference input app and the regional tax rates. The Tax Administrator designates temporary difference as either current or non-current in order to correctly classify the resulting deferred tax asset / (liability) on the deferred tax report and the income tax disclosure. Tax Provision automatically classifies positive values as assets and negative values as liabilities.

Note: For more information on reports, see "Working with reports".

The deferred tax rollforward shows the current period deferred tax activity for an entity for temporary differences, net operating losses, tax credits, and valuation allowances.

This report contains tax-affected data for the accounts that appear in the "Temporary Differences input app (SS0301)".

To review the regional Deferred Tax Rollforward report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual.
  3. Expand Group
  4. Use the drop-down list or the symbol selector to select the appropriate region.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0401G - Deferred Tax Rollforward.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see "Temporary Differences input app (SG0301)".

Deferred Tax Rollforward - Scheduling report (SA0402G)

Entities using the deferred tax scheduling methodology use the same format and calculations as the deferred tax rollforward with the following differences:

The end of period deferred tax balance is based on the sum of the deferred tax balances for each of the scheduled years. Since the tax rates may differ during the years over which the temporary difference is expected to reverse, the ending balance is a sum of the calculated deferred tax balances for each year.

The tax rate change is based on the average deferred tax rate calculated by dividing the ending deferred tax balance as calculated by the end of period gross temporary difference and not on the deferred tax rates entered in the Tax Rates input app (XRC0201 or XRC1201).

Note: For more information on reports, see "Working with reports".

This report contains the same Elements (across) as the Deferred Tax Rollforward report (SA0401G) with the scheduling elements included as additional columns.

To review the regional Deferred Tax Rollforward - Scheduling report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Group
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0402G - Deferred Tax Rollforward - Scheduling.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see "Temporary Differences input app (SG0301)".

Deferred Tax Classification report (SA0403G)

This report shows the breakdown of the regional deferred tax asset / (liabilities) into one of the following classifications:

  • Regional Deferred Tax Asset - Current
  • Regional Deferred Tax Liability - Current
  • Regional Deferred Tax Asset - Non-Current
  • Regional Deferred Tax Liability - Non-current

The classification of these items is based on: 

  • The “Current or Non-Current” column. This setting determines whether the balance is classified in the current or non-current columns.
  • The balance in symbol MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability). If this balance is positive, the amount is classified as an asset. If this balance is negative, the amount is classified as a liability.

The regional deferred tax ending balance is considered an asset if:

  • For all temporary differences except valuation allowances:

    MSP_NetREOY_ASC > 0 or MSP_NetREOY_ASC = 0 and NetRBOYA_ASC > 0 or MSP_NetREOY_ASC = 0, NetRBOYA_ASC = 0, and NetRBOY_ASC > 0

  • For valuation allowance accounts, the amount is multiplied by -1:

    MSP_NetREOY_ASC < 0 or MSP_NetREOY_ASC = 0 and NetRBOYA_ASC < 0 or MSP_NetREOY_ASC = 0, NetRBOYA_ASC = 0, and NetRBOY_ASC < 0

Otherwise, the ending balance is considered a liability.

Note: For more information on reports, see "Working with reports".

This report contains the following symbols in the Elements dimension (across):

  • NetRCA_ASC—Regional Deferred Tax Asset - Current

    This column represents the amount of regional deferred tax classified as current asset.

  • NetRCL_ASC—Regional Deferred Tax Liability - Current

    This column represents the amount of regional deferred tax classified as a current liability.

  • NetRNA_ASC—Regional Deferred Tax Asset - Non-Current

    This column represents the amount of regional deferred tax classified as a non-current asset.

  • NetRNL_ASC—Regional Deferred Tax Liability - Non-Current

    This column represents the amount of regional deferred tax classified as a non-current liability.

  • NetRTot_ASC—Regional Total

    This column represents the regional total classification.

To review the Deferred Tax Classification report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Group
  4. Use the drop-down list or the symbol selector to select the appropriate region.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0403G - Deferred Tax Classification.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see Deferred Tax Rollforward report (SA0401G).

Deferred Tax - for Tax Account Rollforward report (SA0404G)

This report shows the breakdown of the deferred tax rollforward into further detail for each Element, for use in Tax Account Rollforward mappings.

Note: For more information on reports, see "Working with reports".

The deferred tax rollforward is classified as one of the following classifications:

  • Regional Deferred Tax Asset - Current
  • Regional Deferred Tax Liability - Current
  • Regional Deferred Tax Asset - Non-Current
  • Regional Deferred Tax Liability - Non-Current

The classification of these items is based on:

  • The “Current or Non-Current” column. This setting determines whether the balance is classified in the current or non-current columns.
  • The balance in symbol MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability). If this balance is positive, the amount is classified as an asset. If this balance is negative, the amount is classified as a liability.

The deferred tax ending balance is considered an asset for all deferred tax accounts except valuation allowances if the value in element MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability) is greater than zero. For the valuation allowance accounts, the balance is treated as an offset to the asset balance if the value in element MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability) is less than zero. Otherwise, the ending balance is considered a liability.

Administrators can use the Current and Deferred Tax editor to indicate the account level at which the classification of the deferred tax balances is determined. The highest level account selected is used as the classification level. For example:

  • If you want deferred tax balances to be classified at each temporary difference, select a classification level for each temporary difference account.
  • If you want deferred tax balances to be classified at the total GAAP to STAT temporary difference level, select the classification level at the GAAP to STAT parent temporary difference account. This overrides the classification level setting at the temporary difference account level below the parent level GAAP to STAT temporary difference.

For more information, see the Longview Tax Administrator’s Guide.

In addition to the above classification processes, Tax Provision also reviews the classification of balances between the end of the period and the beginning of the year to determine if there has been a change in the overall classification of deferred balances (i.e. current asset at beginning of year is a current liability at the end of the period). If there is a classification change, the reclass elements provide the adjustment that is mapped to the Tax Account Rollforward to automate the reclassification adjustment (reflected in the Reclassification of Deferred Tax Accounts row of the tax account rollforward).

This report contains the following symbols in the Elements dimension (across):

  • MSP_NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability)

    The regional deferred tax balance at the end of the year.

  • MSP_NetRClass_ASC—Regional National Tax Classification

    The parent element of the classified deferred tax rollforwards for Regional Deferred Tax Asset - Current, Regional Deferred Tax Liability - Current, Regional Deferred Tax Asset - Non-Current, and Regional Deferred Tax Liability - Non-current, along with their related beginning of year reclass adjustments.

To review the Deferred Tax - for Tax Account Rollforward report

  1. In the Tax Provision navigation pane, click Reports.
  2. Expand Multi-Regional Annual. 
  3. Expand Group
  4. Use the drop-down list or the symbol selector to select the appropriate entity.

    For more information, see “Using the Symbol Selector”.

  5. Click SA0404G - Deferred Tax - for Tax Account Rollforward.rtp. The report opens in the workspace.
  6. Review the account values for each appropriate element.

    For more information on the accounts in this report, see Deferred Tax Rollforward report (SA0401G).
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