Reviewing The Deferred Tax Rollforward National Forecast Reports

Tax Provision calculates a detailed forecasted deferred tax and forecasted interim deferred tax provision. The forecasted national deferred tax is the sum of the deferred tax for the Actual time period and the Interim time period (remainder of the year).

Deferred Tax Rollforward Forecast report (NF0401 / NF0401R)

This report contains tax-affected data for the accounts that appear in the Temporary Differences Forecast input app.

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

This report contains the following symbols in the Elements dimension:

• NetNEOY_ASC — EOY Deferred Tax Asset/(Liability)

  This column represents the end of the year Actuals deferred tax balance. For more information on these symbols, see “Deferred Tax Rollforward report (NA0401)”.

• NetNCYIP_ASC — Interim Current Year

  This column represents the tax impact of the interim 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 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.

• NetNCurDfdIP_ASC — Interim Other Adjustments - Current and Deferred Impact

  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 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.

• NetNDfdIP_ASC — Interim 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 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.

• NetNBRDPIP_ASC — Interim NBR Deferred Provision

  This column impacts the adjusted National level interim deferred provision. This column is calculated by multiplying the inverse of the Regional Interim total deferred provision by the national current year tax rate.

• NetNRCCYrIP_ASC — Interim 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 deferred rate.

• NetNTotBDAIP_ASC — Interim Before Discrete Adjustments

  This column is the sum of the previous interim columns.

• NetNRTPDfdIP_ASC — Interim RTP - Deferred Only Impact Reversal

  This column represents the tax impact of the activity posted into the Interim RTP - Deferred Only Impact Reversal column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the current year tax rate.

• NetNBRRTPDfdIP_ASC — Interim RTP NBR Reversal

  This column is automated within the system to remove the net national tax expense or benefit of the regional tax expense or benefit for the regional return to provision adjustment. This amount is removed from the annualized deferred effective tax rate and is automatically treated as a discrete amount.

• NetNBRRARDfdIP_ASC — Interim RAR NBR Reversal

  This column is automated within the system to remove the net national tax expense or benefit of the regional tax expense or benefit for the regional taxing authority settlement adjustment. This amount is removed from the annualized deferred effective tax rate and is automatically treated as a discrete amount.

• NetNRCCYIP_ASC — Interim Rate Change Reversal

  This column is automated within the system to remove the net national tax expense or benefit of the national tax rate change calculated on the interim elements. This amount is removed from the annualized deferred effective tax rate and is automatically treated as a discrete amount.

• NetEOYIP_ASC — Interim EOY Deferred Tax Asset/(Liability)

  This column is the sum of the actual and interim deferred tax elements. The amount represents the forecasted end-of-year deferred tax balance without items treated as discrete within the system.

• NetNEOYFCST_ASC — Forecast National EOY Deferred Tax Asset/(Liability)

  This column is the sum of the interim deferred tax elements. The amount represents the adjustments to the actual elements to forecast the end-of-year deferred tax balance without items treated as discrete within the system.

• NetNBRRCCYIP_ASC — Interim NBR Tax Rate Change Reversal

  This column is automated within the system to remove the net national tax expense or benefit of the regional tax expense or benefit for the regional tax rate change adjustment. This amount is removed from the annualized deferred effective tax rate and is automatically treated as a discrete amount.

• NetNRTPDfdIP_ASC — Interim RAR - Deferred Only Impact Reversal

  This column represents the tax impact of the activity posted into the Interim RAR - Deferred Only Impact Reversal column of the gross temporary difference rollforward. This balance is equal to the amount in the gross temporary difference column multiplied by the current year tax rate.

• NetNEOYIP_ASC — Interim EOY Balance

  This column represents the end of the year Interim deferred tax balance.

• NetNEOYFcst_ASC — Forecast EOY Balance

  This symbol is the sum of the Actuals EOY and the Interim EOY values, including discrete adjustments. This symbol appears for non-scheduled entities.

To review the Deferred Tax Rollforward Forecast report:

1. In the Tax Provision navigation pane, click Reports.
2. Expand National 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. Do one of the following:
   • For Provision, click NF0401 - Deferred Tax Rollforward Forecast.rtp.
   • For Multi-Regional Provision, click NF0401R - Deferred Tax Rollforward Forecast.rtp.

   The report opens in the workspace.

5. Review the account values for each appropriate element. For detailed information on the accounts in this report, see Understanding Elements for temporary differences.

Deferred Tax Rollforward Forecast - Scheduling report (NF0402 / NF0402R)

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 (XNC0201 or XNC1201).

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

This report contains the same Elements as the Deferred Tax Rollforward Forecast report (NF0401), with the following additional symbols:

• NetNEOYBDAFcst_ASC — Forecast EOY Deferred Tax Before Discrete Adjustments

  This column represents the sum of the Actuals EOY and the Interim EOY values, excluding the discrete adjustments.

• NetNEOY1IP_ASC — Interim Balance Reversing in Year 1

  This column represents the interim amount reversing in the first year.

• NetNEOYNBR1IP_ASC — Interim NBR Balance Reversing in Year 1

  This column represents the interim national benefit of region amount reversing in the first year.

• NetNEOYT1IP_ASC — Interim Total Balance Reversing in Year 1

  This column represents the interim total amount reversing in the first year.

• NetNEOY2IP_ASC — Interim Balance Reversing in Year 2

  This column represents the interim amount reversing in the second year.

• NetNEOYNBR2IP_ASC — Interim NBR Balance Reversing in Year 2

  This column represents the interim national benefit of region amount reversing in the second year.

• NetNEOYT2IP_ASC — Interim Total Balance Reversing in Year 2

  This column represents the interim total amount reversing in the second year.

• NetNEOY3IP_ASC — Interim Balance Reversing in Year 3

  This column represents the interim amount reversing in the third year.

• NetNEOYNBR3IP_ASC — Interim NBR Balance Reversing in Year 3

  This column represents the interim national benefit of region amount reversing in the third year.

• NetNEOYT3IP_ASC — Interim Total Balance Reversing in Year 3

  This column represents the interim total amount reversing in the third year.

• NetNEOY4IP_ASC — Interim Balance Reversing in Year 4

  This column represents the interim amount reversing in the fourth year.

• NetNEOYNBR4IP_ASC — Interim NBR Balance Reversing in Year 4

  This column represents the interim national benefit of region amount reversing in the fourth year.

• NetNEOYT4IP_ASC — Interim Total Balance Reversing in Year 4

  This column represents the interim total amount reversing in the fourth year.

• NetNEOY5IP_ASC — Interim Balance Reversing in Year 5

  This column represents the interim amount reversing in the fifth year.

• NetNEOYNBR5IP_ASC — Interim NBR Balance Reversing in Year 5

  This column represents the interim national benefit of region amount reversing in the fifth year.

• NetNEOYT5IP_ASC — Interim Total Balance Reversing in Year 5

  This column represents the interim total amount reversing in the fifth year.

• NetNTYrIP_ASC — Interim Total Balance Reversing Years

  This column represents the interim total amount reversing over the five year period.

To review the Deferred Tax Rollforward Forecast - Scheduling report:

1. In the Tax Provision navigation pane, click Reports.
2. Expand National 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. Do one of the following:
   • For Provision, click NF0402 - Deferred Tax Rollforward Forecast - Scheduling.rtp.
   • For Multi-Regional Provision, click NF0402R - Deferred Tax Rollforward Forecast - Scheduling.rtp.

   The report opens in the workspace.

5. Review the account data for each scheduling period. For information on the accounts in this report, see Deferred Tax Rollforward report (NA0401).

Deferred Tax Classification Interim report (NF0404)

This report shows the breakdown of the deferred tax asset / (liabilities) into one of the following classifications:

• Interim Current Deferred Tax Asset
• Interim Current Deferred Tax Liability
• Interim Non-current Deferred Tax Asset
• Interim Non-current Deferred Tax Liability

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 NetNEOYCLSSIP_ASC — Interim 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 if:

• For all temporary differences except valuation allowances:
• NetNEOYCLSSIP_ASC > 0 or
• NetNEOYCLSSIP_ASC = 0 and NetNBOYA_ASC > 0 or
• NetNEOYCLSSIP_ASC = 0, NetNBOYA_ASC = 0, and NetNBOY_ASC > 0 
• For valuation allowance accounts, the sign is reversed:
• NetNEOYCLSSIP_ASC < 0 or
• NetNEOYCLSSIP_ASC = 0 and NetNBOYA_ASC < 0 or
• NetNEOYCLSSIP_ASC = 0, NetNBOYA_ASC = 0, and NetNBOY_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:

To review the Deferred Tax Classification Interim report:

1. In the Tax Provision navigation pane, click Reports.
2. Expand National 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. Do one of the following:
   • For Provision, click NF0404 - Deferred Tax Classification Interim.rtp.
   • For Multi-Regional Provision, click NF0404R - Deferred Tax Classification Interim.rtp.

   The report opens in the workspace.

5. Review the account values for each appropriate element. For detailed information on the accounts in this report, see Deferred Tax Rollforward Forecast report (NF0401 NF0401R).

Deferred Tax - for Tax Account Rollforward Interim report (NF0405 / NF0405R)

This report shows the breakdown of the deferred tax rollforward into further detail for each Element, for use in Tax Account Rollforward mappings.

The deferred tax rollforward is classified as one of the following:

• Current Deferred Tax Asset
• Current Deferred Tax Liability
• Non-Current Deferred Tax Asset
• Non-Current Deferred Tax Liability

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 NetNEOY_ASC — 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.

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

The deferred tax ending balance is considered an asset for all deferred tax accounts except valuation allowances if the value in element NetNEOY_ASC — 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 NetNEOY_ASC — EOY Deferred Tax Asset/(Liability) is less than zero. Otherwise, the ending balance is considered a liability.

You 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):

• NetNEOYCLSSIP_ASC — Interim EOY Deferred Tax Asset/(Liability)

  The interim deferred tax balance at the end of the year.

• NetNClassIP_ASC — Interim National Tax Classification

  The parent element of the classified deferred tax rollforwards for Current Asset, Current Liability, Non-Current Asset, and Non-Current Liability, along with their related beginning of year reclass adjustments.

To review the Deferred Tax - for Tax Account Rollforward National Interim report:

1. In the Tax Provision navigation pane, click Reports.
2. Expand National 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. Do one of the following:
   • For Provision, click NF0405 - Deferred Tax - for Tax Account Rollforward Interim.rtp.
   • For Multi-Regional Provision, click NF0405R - Deferred Tax - for Tax Account Rollforward Interim.rtp.

   The report opens in the workspace.

5. Review the account values for each appropriate element. For detailed information on the accounts in this report, see Deferred Tax Rollforward Forecast report (NF0401 / NF0401R).