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.

Temporary Difference Forecast Accounts

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:

• 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. This element displays only for entities that use scheduling.

• GrsRTPDfdIP_ASC — Interim RTP - Deferred Only Impact Reversal

  This symbol reverses the Actuals return to provision - deferred only impact. This element displays only for non-scheduled entities.

• GrsRARDfdIP_ASC — Interim RAR - Deferred Only Impact Reversal

  This symbol reverses the Actuals Revenue Agent’s Report - deferred only impact. This element displays only for non-scheduled entities.

• GrsEOYIP_ASC — Interim EOY Balance

  The end of the year Interim gross temporary difference balance. This element displays only for non-scheduled entities.

• 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.

Temporary Differences Forecast input app (SSF0301 / SGF0301)

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.

Note: The group nexus regions input is not available if you are using the blended deferred approach to the regional deferred tax calculation method.

To update regional forecast temporary differences:

1. In the Tax Provision navigation pane, click Data Collection.
2. Expand Multi-Regional Interim.
3. Do one of the following:
   1. For Separate Nexus Regions:
      1. Expand Separate.
      2. Use the drop-down list or the symbol selector to select the appropriate entity. For more information, see Using the Symbol Selector.
      3. Click SSF0301 - Temporary Differences Forecast. The input app opens in the workspace. Regions with which the entity has separate nexus are displayed as separate tabs.
   2. For Group Nexus Regions:
      1. Expand Group.
      2. Use the drop-down list or the symbol selector to select the appropriate region. For more information, see Using the Symbol Selector.
      3. Click SGF0301 – Temporary Differences Forecast. If the region contains multiple regional groups, you will be prompted to select one. The input app opens in the workspace. Entities in the group are displayed tabs. If the group contains multiple currencies, the currency of the entity is also displayed in the tab.
4. Update the appropriate accounts.
5. When you are finished, click Submit.

Temporary Differences Forecast report (SF0301S / SF0301G)

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 Multi-Regional Interim. 
3. Do one of the following:
   1. To view the separate regions report:
      1. Expand Separate.
      2. Use the drop-down list or the symbol selector to select the appropriate entity. For more information, see Using the Symbol Selector.
      3. Click SF0301S - Temporary Differences Forecast.
      4. Select a region to display in the report. The report opens in the workspace. The selected region is displayed as a column above the forecast elements.
   2. To view the group regions report:
      1. Expand Group.
      2. Use the drop-down list or the symbol selector to select the appropriate region. For more information, see Using the Symbol Selector.
      3. Click SF0301G – Temporary Differences Forecast. The report opens in the workspace. The selected region is displayed as a column above the regional groups within the selected region. Below each regional group the forecast elements are displayed.
4. Review the appropriate accounts. For information on the accounts in this report, see Temporary Differences Forecast input app (SSF0301 / SGF0301).

Temporary Differences Forecast - Scheduling report (SF0302S / SF0302G)

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. Do one of the following:
   1. To view the separate regions report:
      1. Expand Separate.
      2. Use the drop-down list or the symbol selector to select the appropriate entity. For more information, see Using the Symbol Selector.
      3. Click SF0302S - Temporary Differences Forecast - Scheduling. Select a region to display in the report. The report opens in the workspace. The selected region is displayed as a column above the interim elements.
   2. To view the group regions report:
      1. Expand Group.
      2. Use the drop-down list or the symbol selector to select the appropriate region. For more information, see Using the Symbol Selector.
      3. Click SF0302G - Temporary Differences Forecast - Scheduling. The report opens in the workspace. The selected region is displayed as a column above the regional groups within the selected region. Below each regional group the interim elements are displayed.
4. Review the appropriate accounts. For more information on the accounts in this report, see Temporary Differences Forecast input app (SSF0301 / SGF0301). 

Temporary Difference Classification Forecast report (SF0304R / SF0304S / SF0304G)

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:

• GrsEOYIP_ASC — Interim EOY Balance

  The end of the year Interim gross temporary difference balance. This element displays only for non-scheduled entities.

• 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. Do one of the following:
   1. To view all regions report:
      1. Expand All Regions.
      2. Use the drop-down list or the symbol selector to select the appropriate entity. For more information, see Using the Symbol Selector.
      3. Click SF0304R - Temporary Differences Classification Forecast. The report opens in the workspace. Regions with which the entity has nexus are displayed as columns above the interim elements.
   2. To view the separate regions report:
      1. Expand Separate.
      2. Use the drop-down list or the symbol selector to select the appropriate entity. For more information, see Using the Symbol Selector.
      3. Click SF0304S - Temporary Differences Classification Forecast.
      4. Select a region to display in the report. The report opens in the workspace. The selected region is displayed as a column above the interim elements.
4. Review the account values for each appropriate element. For more information on the accounts in this report, see Temporary Differences Forecast input app (SSF0301 / SGF0301).