Updating forecasted regional temporary differences

The forecasted regional temporary differences are the sum of the temporary differences for the Actual time period and the Interim time period (remainder of the year).

For entities that use deferred tax scheduling, there is an additional step required in the gross temporary difference rollforward. You must schedule the end of period gross temporary difference balance based on when the temporary difference is expected to reverse.

Current Provision Forecast input app (RF0201)

Use this input app to review and post adjustments to the automated pre-tax income and permanent and temporary difference amounts.

This input app includes Analyze functionality. For more information, see “Analyzing data for automation source information”.

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

• ISEQCAT—Income, Equity, or OCI

  Specifies whether the account is classified as Income, Equity, or OCI.

• GrsCY_ASC—Current Year

  This symbol represents the current period.

• GrsCYIP_ASC—Interim Current Year

  The symbol represents the Forecasted time period (for the remainder of the year).

• GrsCYFcst_ASC—Forecast Current Year

  This symbol represents the Forecasted total for the current year.

• GrsCYForecast_ASC—Forecast Current Year Input

  This column represents the input forecasted total for the current year.

To update the regional forecast current provision:

1. In the Tax Provision navigation pane, click Data Collection.
2. Expand Regional Interim.
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 RF0201 - Current Provision Forecast.lvapp. The input app opens in the workspace.
5. Update the appropriate accounts.

   For more information on the symbols in this input app, see “Current Provision input app (RA0201)”.

   Note: Values input in the Interim Current Year are adjustments to the results calculated from Forecast Current Year Input.

6. When you are finished, click Submit.

Updating the forecasted regional current provision

The forecasted regional current provision is the sum of the current regional provision for the actual time period and the interim time period (remainder of the year).

For more information on the calculation used, see “Updating and reviewing the current regional provision”.

Tax Provision calculates an interim regional provision by legal entity.

Understanding Elements for temporary differences

Use these elements to manually enter the gross temporary differences that are not automated in the system.

Temporary Difference elements

If you are using the Temporary Difference method, the following elements appear in the input app:

• CURNONCUR—Current or Non-Current

  This column identifies the temporary difference account as current or non-current.

• ISEQCAT—Income, Equity, or OCI

  This column specifies whether the account is classified as Income, Equity, or OCI.

• GrsEOY_ASC—EOY Balance

  The end of the year Actuals gross temporary difference balance. For more information on these symbols, see “Temporary Difference elements”.

• GrsCYIP_ASC—Interim Current Year

  This column represents current year interim activity for temporary differences. The interim current year activity is populated from the interim current year provision except for national tax attributes and valuation allowance, which you must enter manually.

• GrsCurDfdIP_ASC—Interim Other Adjustments - Current and Deferred Impact

  Other current year adjustments to the gross temporary difference. The tax impact of this amount is reflected in the NetNCurDfdIP_ASC symbol on the deferred tax rollforward. The tax impact of this adjustment impacts the deferred provision in NetNCurDfdIP_ASC and also impacts the current provision in an equal and opposite amount in symbol NAddCurrentS002. The purpose of this process is that there is no impact to an entity’s total provision resulting from temporary differences. You must enter values for this symbol manually.

• GrsDfdIP_ASC—Interim Other Adjustments - Deferred Only

  Current year return to provision true-up from the Return to Provision input app (NA0101). The tax impact of this amount is reflected in symbol NetNRTPCurDfdIP_ASC on the deferred tax rollforward. The tax impact of this adjustment impacts the deferred provision in NetNRTPCurDfdIP_ASC and the effective tax rate report and total provision national actual report. You must enter values for this symbol manually.

• GrsTotBDAIP_ASC—Interim Before Discrete Adjustments

  This symbol is the sum of the interim columns.

• GrsRTPDfdIP_ASC—Interim RTP - Deferred Only Impact Reversal

  This symbol reverses the Actuals return to provision - deferred only impact.

• GrsRTPDfdIP_ASC—Interim RAR - Deferred Only Impact Reversal

  This symbol reverses the Actuals Revenue Agent’s Report - deferred only impact.

• GrsEOYIP_ASC—Interim EOY Balance

  The end of the year Interim gross temporary difference balance.

• GrsEOYFcst_ASC—Forecast EOY Balance

  This symbol is the sum of the Actuals EOY and the Interim EOY values. This element displays only for non-scheduled entities.

• NetNEOYBDAFcst_ASC—Regional Forecast EOY Deferred Tax Balance Before Discrete Adjustments

  This column represents the sum of the Actuals EOY and the Interim EOY values, excluding the discrete adjustments. This element displays only for entities that use scheduling.

Scheduling elements

Use these elements for any entities that schedule to account for fluctuating deferred tax rates. The entire amount is defaulted to the fifth year. In the input app, you can allocate across the other years, which allows Tax Provision to calculate the proper end of period deferred tax balance.

If you are using scheduling, the following elements appear in the input app:

• GrsEOY1IP_ASC—Interim Amt Reversing in Year 1

  This column represents the interim amount reversing in the first year. You must enter values for this symbol manually.

• GrsEOY2IP_ASC—Interim Amt Reversing in Year 2

  This column represents the interim amount reversing in the second year. You must enter values for this symbol manually.

• GrsEOY3IP_ASC—Interim Amt Reversing in Year 3

  This column represents the interim amount reversing in the third year. You must enter values for this symbol manually.

• GrsEOY4IP_ASC—Interim Amt Reversing in Year 4

  This column represents the interim amount reversing in the fourth year. You must enter values for this symbol manually.

• GrsEOY5IP_ASC—Interim Amt Reversing in Year 5

  This column represents the end of year interim balance minus amounts reversing in prior years. This symbol is calculated (GrsEOYIP_ASC - GrsEOY1IP_ASC - GrsEOY2IP_ASC - GrsEOY3IP_ASC - GrsEOY4IP_ASC).

• GrsTYRIP_ASC—Interim Total Amount Reversing

  This column represents the total interim amount reversing over the five year period. This symbol is calculated (GrsEOY1IP_ASC + GrsEOY2IP_ASC + GrsEOY3IP_ASC + GrsEOY4IP_ASC + TMPCTDEOY5).

Temporary Differences Forecast input app (RF0301)

Use this input app to update regional forecast temporary difference accounts.

This input app includes Analyze functionality. For more information, see “Analyzing data for automation source information”.

This input app contains the Temporary Difference elements.

To update regional forecast temporary differences:

1. In the Tax Provision navigation pane, click Data Collection.
2. Expand Regional Interim.
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 RF0301 - Temporary Differences Forecast.lvapp. The input app opens in the workspace.
5. Update the appropriate accounts.

   For information on the symbols in this input app, see “Temporary Differences input app (RA0301)”.

6. When you are finished, click Submit.

Temporary Differences Forecast report (RF0301)

Use this report to review regional forecast temporary difference accounts.

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

This report contains the Temporary Difference elements.

To review the regional Temporary Differences Forecast report:

1. In the Tax Provision navigation pane, click Reports.
2. Expand Regional Interim.
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 RF0301 - Temporary Differences Forecast.rtp. The report opens in the workspace.
5. Review the appropriate accounts.

   For more information on the accounts in this report, see “Temporary Differences Forecast input app (RF0301)”.

Temporary Differences Forecast - Scheduling report (RF0302)

Use this report for any entities that schedule to review fluctuating deferred tax rates. The entire amount is defaulted to the fifth year. You can review the allocation across the other years, which allows Longview Tax to calculate the proper end of period deferred tax balance.

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

This report contains the Temporary Difference elements and the Scheduling elements.

To review the regional Temporary Differences Forecast - Scheduling report:

1. In the Tax Provision navigation pane, click Reports.
2. Expand Regional Interim.
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 RF0302 - Temporary Differences Forecast - Scheduling.lvapp. The report opens in the workspace.
5. Review the appropriate accounts.

   For more information on the accounts in this report, see “Temporary Differences Forecast input app (RF0301)”. 

Temporary Difference Classification Forecast report (RF0304)

This report shows the breakdown of the temporary differences into one of the following classifications:

• current asset
• current liability
• non-current asset
• non-current liability

The ending balance is considered an asset if:

• For all temporary differences except valuation allowances:

  GrsEOYIP_ASC > 0 or
  GrsEOYIP_ASC = 0 and GrsBOYA_ASC > 0 or
  GrsEOYIP_ASC = 0, GrsBOYA_ASC = 0, and GrsBOY_ASC > 0

• For valuation allowance accounts, the sign is reversed:

  GrsEOYIP_ASC < 0 or
  GrsEOYIP_ASC = 0 and GrsBOYA_ASC < 0 or
  GrsEOYIP_ASC = 0, GrsBOYA_ASC = 0, and GrsBOY_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:

• GrsCAIP_ASC—Interim CT Asset

  This column represents the amount of temporary differences classified as a current asset.

• GrsCLIP_ASC—Interim CT Liability

  This column represents the amount of temporary differences classified as a current liability.

• GrsNAIP_ASC—Interim NCT Asset

  This column represents the amount of temporary differences classified as a non-current asset.

• GrsNLIP_ASC—Interim NCT Liability

  This column represents the amount of temporary differences classified as a non-current liability.

• GrsTIP_ASC—Interim Gross Classification

  This column represents the total classification.

To review the Temporary Differences Classification Forecast report:

1. In the Tax Provision navigation pane, click Reports.
2. Expand Regional Interim.
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 RF0304 - Temporary Differences Classification Forecast - Scheduling.rtp. The report opens in the workspace.
5. Review the account values for each appropriate element.

   For more information on the accounts in this report, see “Temporary Differences input app (RA0301)”.