Reviewing The Effective Tax Rate 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 and additional taxes
• special deductions
• change in valuation allowance
• foreign rate difference (consolidated ETR)
• additional provision items
• effective tax rate

The consolidated rate reconciliation starts with the global statutory tax rate to reconcile to an entity’s tax rate using the categories noted above. The statutory rate reconciliation is essentially the same calculation as the consolidated rate reconciliation except that the starting point is based on the entity’s statutory tax rate and therefore there is no foreign rate difference. 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.

Consolidated Effective Tax Rate report (NA0503)

Use this report to view the effective tax rate at the reporting entity level. 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.

• NetNTaxEffectC_ASC — Tax Effect (Consolidated)

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

• TTaxPct — % (Consolidated)

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

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

To review the Consolidated Effective Tax Rate report:

1. In the Tax Provision navigation pane, click Reports.
2. Expand National 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 NA0503 - Consolidated Effective Tax Rate Actual.rtp. The report opens in the workspace.
5. Review the following account values:

   Symbol	Description	Source
   NIBTAdj — GAAP Net Income/(Loss) Before Tax Adjusted	Total GAAP net income after adjustments before tax.	Calculated (NIBT + NIBTAdjT)
   GPerm — GAAP to STAT Permanent Differences	Total GAAP to STAT permanent differences.	Calculated (sum of all GPxxx accounts)
   StPerm — STAT to Tax Permanent Differences	Total STAT to Tax permanent differences.	Calculated (sum of all Stxxx accounts)
   DedTaxT — Total Additional Taxes	Total additional taxes.	Calculated (STATTOTX + RTotal_P)
   SpecDedM — Special Deductions	Special deductions.	Current Provision report (NA0201). The amount in the tax effect column is the gross amount multiplied by the entity’s current year tax rate.
   ValAllowCHF — Change in Valuation Allowance	The change in the valuation allowance deferred tax accounts from the beginning of the year to the end of the period excluding any adjustments that do not have an impact on the provision.	Calculated
   ForRtDiff — Foreign Rate Difference	Foreign rate difference. This symbol appears in the consolidated report only.	This is calculated as part of this report and is equal to the sum of the gross net income before tax as adjusted and permanent differences multiplied by the difference between the entity’s statutory tax rate and the global statutory tax rate.
   NetAddCurrentMxxx — Customer Specific APIs	Company-specific additional provision items.	Current Provision
   RepCurAdjCurrent — Reporting Currency Only Adjustment – Current Provision	Reporting currency only adjustment for the current provision.	Reporting Currency Only Adjustments input app (NA0599) symbol in the RepCurAdjCurrent account.
   NatAddCurrentM_ASC — Additional Provision Items 740 – Manual	Total manual additional provision items.	Sum of TXRCxxx accounts.
   NatAddTotalS_ASC — Additional Total Provision - System	Additional system total provision.	Calculated
   NatAddTotalS009_ASC — Unexplained Deferred Tax Movement	The tax impact of the amounts in the Impact provision column of the Deferred Tax Rollforward report (NA0401).	Automated
   RepCurAdjTotal — Reporting Currency Only Adjustment - Total	Reporting currency only adjustment to the total provision.	Reporting Currency Only Adjustments input app (NA0599) symbol in the RepCurAdjTotal account.
   NatAddTotalM_ASC — Additional Total Provision – Manual	Total manual additional provision items.	Calculated
   AddPrvT_ASC — Additional Provision Items - Total	Total additional provision items.	Calculated
   NatETRConsol_ASC — Consolidated ETR	Consolidated effective tax rate.	Calculated
   NatAddTotalFXAdj_ASC - Income FX Adjustment	Foreign exchange adjustment for NIBT.	This is calculated as part of this report and is equal to the tax effected net income before tax multiplied by the difference between the entity's imputed average FX rate and the entity's applied average FX rate.

Statutory Effective Tax Rate report (NA0501)

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).

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

• GRSCY_RANGE — Current Year

  This column represents gross amounts entered in the Current Provision.

• NetNTaxEffectS_ASC — Tax Effect

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

• TTaxPct — %

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

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

To review the Statutory Effective Tax Rate report:

1. In the Tax Provision navigation pane, click Reports.
2. Expand National 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 NA0501 - 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
   • special deductions
   • change in valuation allowance
   • additional provision items
   • statutory effective tax rate

Total Provision report (NA0502)

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 set up 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 National 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 NA0502 - 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
   • special deductions
   • national tax rate
   • calculated national total provision
   • change in valuation allowance
   • additional provision items
   • calculated total provision
   • net income before tax
   • net income before tax adjustments
   • GAAP to STAT permanent differences
   • STAT to Tax permanent differences
   • regional and additional taxes
   • special deductions
   • national tax rate
   • calculated national total provision
   • change in valuation allowance
   • additional provision items
   • calculated total provision