Reviewing the deferred tax rollforward reports

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Published: January 07, 2024 09:12

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The standard provision logic as discussed in the national deferred tax rollforward section is used in calculation of the Regional deferred tax rollforward. The Regional deferred tax rollforward reports contain the same temporary difference accounts as the Temporary Differences input app (RA0301).

The regional deferred tax reports contain the same columns as the national deferred tax reports, except the regional tax rate is used in the calculation of the regional deferred tax balances.

Regional deferred taxes and provisions are calculated as gross amounts and are reflected as a reduction to the national-level deferred tax asset / (liability) in the National Benefit of Regional columns. If a temporary difference on a Regional level should not be deducted at the National level, the NBR indicator is set to FALSE, resulting in no National benefit of Regional amount being calculated.

Deferred Tax Rollforward report (RA0401)

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 (RA0301).

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

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.
NetRPY_ASC—Regional Prior Year Adjustment (Restatement)
This column reflects the tax impact of the gross prior year adjustment. This balance equals the amount in the gross temporary difference prior year adjustment (restated) column multiplied by the applicable beginning of year regional deferred tax rate.
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. 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. 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. 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. 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. 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. 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. This adjustment impacts the deferred provision and the current provision in an equal and opposite amount in an additional provision item.
NetRTrfrDfd_ASC—Regional Transfers - Deferred Only Impact
This column represents the tax impact of the activity posted into the Transfers - 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. 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.
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.
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.
NetRRCAcqP_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ PRIOR
This element is protected from input as 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 protected from input as the amount input to the Acquisitions input app (RA0303) in NetRRCAcqC_ASC flows 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.
NetRRC_ASC—Regional Deferred Tax Impact - Change in Tax Rates
This is the sum of NetRRCBOY_ASC, NetRRCCY_ASC, and NetRRCAcqT_ASC, and represents the total regional deferred tax expense related to tax rate change.
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 column impacts the end of year deferred tax balance.
NetRAcqCur_ASC—Regional Acquisitions Net
This column impacts the end of year deferred tax balance. It is calculated by multiplying the gross temporary difference symbol by the current year regional deferred tax rate.
NetRAcq_ASC—Regional Acquisitions
Total acquisitions.
NetRRCAcqPR_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ PRIOR Reversal
This element is protected from input as the amount in NetRRCAcqP_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ PRIOR is copied to this element multiplied by -1.
NetRRCAcqCR_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ CUR Reversal
This element is protected from input as the amount in NetRRCAcqC_ASC—Regional Deferred Tax Impact - Change in Tax Rates ACQ CUR is copied to this 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.
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.
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.
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.
NetRNPT_ASC—Regional Total Non Provision
Total Non-Provision Items.
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.
NetRCTAT_ASC—Regional CTA
Total CTA for deferred tax.
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.

To review the regional Deferred Tax Rollforward report

In the Tax Provision navigation pane, click Reports.
Expand Regional Annual.
Use the drop-down list or the symbol selector to select the appropriate entity.
For more information, see “Using the Symbol Selector”.
Click RA0401 - Deferred Tax Rollforward.rtp. The report opens in the workspace.
Review the account values for each appropriate element.
For more information on the accounts in this report, see "Temporary Differences input app (RA0301)".

Deferred Tax Rollforward - Scheduling report (RA0402)

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 (RA0401) with the following additional symbols:

NetREOY1_ASC—Regional Balance Reversing in Year 1
This column represents the amount reversing in the first year.
NetREOY2_ASC—Regional Balance Reversing in Year 2
This column represents the amount reversing in the second year.
NetREOY3_ASC—Regional Balance Reversing in Year 3
This column represents the amount reversing in the third year.
NetREOY4_ASC—Regional Balance Reversing in Year 4
This column represents the amount reversing in the fourth year.
NetREOY5_ASC—Regional Balance Reversing in Year 5
This column represents the amount reversing in the fifth year.
NetRTYR_ASC—Regional Total Balance Reversing Year
This column represents the total amount reversing over the five year period.

To review the regional Deferred Tax Rollforward - Scheduling report

In the Tax Provision navigation pane, click Reports.
Expand Regional Annual.
Use the drop-down list or the symbol selector to select the appropriate entity.
For more information, see “Using the Symbol Selector”.
Click RA0402 - Deferred Tax Rollforward - Scheduling.rtp. The report opens in the workspace.
Review the account values for each appropriate element.
For more information on the accounts in this report, see "Temporary Differences input app (RA0301)".

Deferred Tax Classification report (RA0403)

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 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:
NetREOY_ASC > 0 or NetREOY_ASC = 0 and NetRBOYA_ASC > 0 or NetREOY_ASC = 0, NetRBOYA_ASC = 0, and NetRBOY_ASC > 0

For valuation allowance accounts, the amount is multiplied by -1:
NetREOY_ASC < 0 or NetREOY_ASC = 0 and NetRBOYA_ASC < 0 or 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

In the Tax Provision navigation pane, click Reports.
Expand Regional Annual.
Use the drop-down list or the symbol selector to select the appropriate entity.
For more information, see “Using the Symbol Selector”.
Click RA0403 - Deferred Tax Classification.rtp. The report opens in the workspace.
Review the account values for each appropriate element.
For more information on the accounts in this report, see "Deferred Tax Rollforward report (RA0401)".

Deferred Tax - for Tax Account Rollforward report (RA0404)

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 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 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 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):

NetREOY_ASC—Regional EOY Deferred Tax Asset/(Liability)
The regional deferred tax balance at the end of the year.
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

In the Tax Provision navigation pane, click Reports.
Expand Regional Annual.
Use the drop-down list or the symbol selector to select the appropriate entity.
For more information, see “Using the Symbol Selector”.
Click RA0404 - Deferred Tax - for Tax Account Rollforward.rtp. The report opens in the workspace.
Review the account values for each appropriate element.
For more information on the accounts in this report, see "Deferred Tax Rollforward report (RA0401)".

Published: January 07, 2024 09:12