Reviewing the effective tax rate, reconciliation, and total provision

Tax Provision calculates the effective tax rate (ETR) reconciliation automatically at the statutory and consolidated rates. The statutory and consolidated rate reconciliation reports capture the following items on a gross and tax affected basis:

• net income before tax
• net income before tax adjustments
• GAAP to STAT permanent differences
• STAT to Tax permanent differences
• regional permanent differences
• regional change in valuation allowance
• regional additional provision items
• regional effective tax rate

The rate reconciliation automatically calculates the tax impact of reconciling items as a percentage of pre-tax net income before taxes as adjusted. The system provides the ability to drill down to the lowest level of detail of each of the above reconciling items to view the contribution of each item to the overall effective tax rate depending on the level of information that is entered.

Statutory Effective Tax Rate report (RA0501)

This report contains similar symbols as the Consolidated Effective Tax Rate reported at the entity level. However, the Statutory Effective Tax Rate report does not include the Foreign Rate Difference (ForRtDiff).

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

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

• GRSCY_RANGE—Current Year

  This column represents gross amounts entered in the Current Provision.

• NetRTaxEffectS_ASC—Tax Effect (Regional - Statutory)

  This column represents the net regional (tax) effect for values in the current and deferred provisions.

• TTaxPct—% (Regional - Statutory)

  This column represents the regional tax effect percent and is calculated (GRSCY_RANGE / NetRTaxEffectC_ASC * 100).

To review the Statutory Effective Tax Rate report

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

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

4. Click RA0501 - Statutory Effective Tax Rate.rtp. The report opens in the workspace.
5. Review the following values:
   • net income before tax
   • net income before tax adjustments
   • GAAP to STAT permanent differences
   • STAT to Tax permanent differences
   • regional and additional taxes
   • regional and additional taxes - reversal
   • regional permanent differences
   • regional tax rate
   • calculated regional total provision
   • change in regional valuation allowance
   • regional additional provision items
   • calculated total regional provision

Statutory Total Provision Reconciliation report (RA0504)

After you review the regional total provision, you can use reports to ensure that the total for the current provision and deferred tax matches your regional statutory and effective tax rates.

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

Use this report to verify that the total of the regional actual current provision and regional deferred tax provision matches the total calculated for the regional statutory effective tax rate.

To review the regional total provision reconciliation

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

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

4. Click RA0504 - Statutory Total Provision Reconciliation.rtp. The report opens in the workspace.
5. Verify that the value for the sum of the Regional Current Provision and the Regional Deferred Taxes is equal to the value for the Regional Total Provision.

Total Provision report (RA0502)

Tax Provision calculates a total provision, which is equal to the current and deferred provisions but in a format similar to the current provision. The Total Provision produces the same result as the effective tax rate (ETR) reconciliation. The system’s total provision is setup as an independent calculation of an entity’s total provision by adjusting an entity’s pre-tax income by permanent differences. The resultant tax provision is then adjusted for any adjustments that are not based on current year P/L activity.

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

The Total Provision report contains one symbol in the Elements dimension (across), which represents the current year period (GrsCY_ASC).

To review the Total Provision report

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

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

4. Click RA0502 - Total Provision.rtp. The report opens in the workspace.
5. Review the following values:
   • net income before tax
   • net income before tax adjustments
   • GAAP to STAT permanent differences
   • STAT to Tax permanent differences
   • regional and additional taxes
   • regional and additional taxes - reversal
   • regional permanent differences
   • regional tax rate
   • calculated regional total provision
   • change in regional valuation allowance
   • regional additional provision items
   • calculated total regional provision