Skip to main content
insightsoftware Documentation insightsoftware Documentation
{%article.title%}
Published:
Was this article helpful?
0 out of 0 found this helpful

Completing The National Interim Tax Process

Tax Provision allows you to calculate an interim provision based on an estimated annual effective income tax rate, which is then multiplied by the year-to-date pre-tax book income.

Tax Provision standard functionality provides the ability to prepare a full provision based on year to date numbers and an interim provision based on an interim approach. As with the standard provision process, automated and manual inputs to the interim tax calculation are required in local currency.

The following table outlines the ASC 740 national interim tax process in Tax Provision:

Note: If an owner of a partnership is locked for input, the partnership calculations will fail if changes are submitted to the partnership entity. You can correct this by running the failed partnership calculations for the partnership entity from the Tax Calculations interface once the lock on the owner is released.

Step Input apps/reports to use...

  1. Complete the pre-provision process.

For more information, see Completing the pre-provision process or Completing the multi-regional pre-provision process.

  1. For Canadian entities, update and review asset depreciation.

Capital Cost Allowance Forecast input app and report (NF0921)

Cumulative Eligible Capital Forecast input app and report (NF0922)

CCA Restricted Pools Forecast input app and report (NF0923)

CCA Unrestricted Pools Forecast input app and report (NF0924)

For more information, see “Updating asset depreciation.

  1. Update and review the national forecast current provision.

Current Provision Forecast input app (NF0201)

Current Provision Forecast report (NF0201)

  1. Update and review the national forecast gross temporary difference rollforward activity.

Temporary Differences Forecast input app (NF0301)

Temporary Differences Forecast report (NF0301 / NF0301R)

Temporary Differences Forecast - Scheduling report (NF0302 / NF0302R)

Temporary Differences Classification Forecast report (NF0304 / NF0304R)

  1. Review the Deferred Tax Rollforward Forecast reports.

Deferred Tax Rollforward Forecast report (NF0401 / NF0401R)

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

Deferred Tax Classification Interim report (NF0404 / NF0404R)

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

  1. Update and review the interim effective tax rate and discrete items.

ETR and Discrete Items Interim input app (NF0803)

ETR and Discrete Items Interim report (NF0803 / NF0803R)

  1. Review the forecast tax expense, consolidated current and deferred interim effective tax rates, interim allocation, and deferred tax rollforward.

Forecast Tax Expense report (NF0802)

Consolidated Current Effective Rate Interim report (NF0805 / NF0805R)

Consolidated Deferred Effective Rate Interim report (NF0806 / NF0806R)

Interim Allocation report (NF0804 / NF0804R)

Deferred Tax Rollforward Interim report (NF0403 / NF0403R)

Published:

Completing The National Interim Tax Process

Tax Provision allows you to calculate an interim provision based on an estimated annual effective income tax rate, which is then multiplied by the year-to-date pre-tax book income.

Tax Provision standard functionality provides the ability to prepare a full provision based on year to date numbers and an interim provision based on an interim approach. As with the standard provision process, automated and manual inputs to the interim tax calculation are required in local currency.

The following table outlines the ASC 740 national interim tax process in Tax Provision:

Note: If an owner of a partnership is locked for input, the partnership calculations will fail if changes are submitted to the partnership entity. You can correct this by running the failed partnership calculations for the partnership entity from the Tax Calculations interface once the lock on the owner is released.

Step Input apps/reports to use...

  1. Complete the pre-provision process.

For more information, see Completing the pre-provision process or Completing the multi-regional pre-provision process.

  1. For Canadian entities, update and review asset depreciation.

Capital Cost Allowance Forecast input app and report (NF0921)

Cumulative Eligible Capital Forecast input app and report (NF0922)

CCA Restricted Pools Forecast input app and report (NF0923)

CCA Unrestricted Pools Forecast input app and report (NF0924)

For more information, see “Updating asset depreciation.

  1. Update and review the national forecast current provision.

Current Provision Forecast input app (NF0201)

Current Provision Forecast report (NF0201)

  1. Update and review the national forecast gross temporary difference rollforward activity.

Temporary Differences Forecast input app (NF0301)

Temporary Differences Forecast report (NF0301 / NF0301R)

Temporary Differences Forecast - Scheduling report (NF0302 / NF0302R)

Temporary Differences Classification Forecast report (NF0304 / NF0304R)

  1. Review the Deferred Tax Rollforward Forecast reports.

Deferred Tax Rollforward Forecast report (NF0401 / NF0401R)

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

Deferred Tax Classification Interim report (NF0404 / NF0404R)

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

  1. Update and review the interim effective tax rate and discrete items.

ETR and Discrete Items Interim input app (NF0803)

ETR and Discrete Items Interim report (NF0803 / NF0803R)

  1. Review the forecast tax expense, consolidated current and deferred interim effective tax rates, interim allocation, and deferred tax rollforward.

Forecast Tax Expense report (NF0802)

Consolidated Current Effective Rate Interim report (NF0805 / NF0805R)

Consolidated Deferred Effective Rate Interim report (NF0806 / NF0806R)

Interim Allocation report (NF0804 / NF0804R)

Deferred Tax Rollforward Interim report (NF0403 / NF0403R)

For an optimal Community experience, Please view on Desktop