Updating Acquisitions Information

If your company had any acquisitions in the previous year, you can manually input the gross and net amounts and the system does not calculate the deferred taxes. Any rate changes that result from acquisition information are calculated by the system.

Acquisitions input app (NA0303)

Use this input app to manually input any temporary differences, net operating losses, credits, and so on, for any acquisitions.

The following is a summary of the standard Longview purchase accounting process:

• The system allows for multiple purchases during a year.
• For each period, there is an acquisition input app that allows you to input the following values for each temporary difference, carryforward, credit and valuation allowance for a company acquired in the current period.

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

CURNONCUR — Current or Non-Current

This column identifies the temporary differences as current or non-current.

GrsAcqCur_ASC — Acquisitions Gross

This column represents the gross amount for the temporary difference at the date of acquisition for the national temporary differences. You must enter values for this symbol manually.

NetNAcqCur_ASC_Input — Acquisitions Net

This column represents the deferred tax amount for the national temporary differences. You must enter values for this symbol manually.

NetNRCAcqC_ASC_Input — Deferred Tax Impact - Change in Tax Rates ACQ CUR

This column represents the adjustment to the national deferred tax expense due to tax rate differences between the acquired tax assets and liabilities and the acquiring entity’s tax rate. It is common for the tax rate of the acquired company to be different than the acquirer, which therefore requires an adjustment to the national deferred tax expense. You must enter values for this symbol manually.

To update acquisitions:

1. In the Tax Provision navigation pane, click Data Collection.
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 NA0303 - Acquisitions.lvapp. The input app opens in the workspace.
5. In the TempT — Total Temporary Differences category, enter data for the following symbols:

   1. GTxxx — Company-specific: Company-specific GAAP to STAT temporary differences.

   2. STxxx — Company-specific: Company-specific STAT to Tax temporary differences.

6. Expand the NatCfdNOLT — Total National Carryforwards and NOLs category, and enter data for the following symbols:

   1. CharNC — Charitable Contributions Carryforward - Non-Current: Non-current charitable contributions carried forward from the previous year.

   2. CharCY — Charitable Contributions Carryforward - Current: Current charitable contributions carried forward from the previous year.

   3. LTCapLossNC — Long Term Capital Loss Carryforward - Non-Current: Non-current long term capital losses carried forward from the previous year.

   4. LTCapLossCY — Long Term Capital Loss Carryforward - Current: Current long term capital losses carried forward from the previous year.

   5. NLossCYGA — Net Operating Loss - CY Generated - Adjustment: Manual adjustment for the calculated net operating loss.

   6. NLossCYU — Net Operating Loss - CY Utilized: Utilization of an existing net operating loss carryforward in the current period.

   7. NLossCA — Net Operating Loss - Consolidating Adjustment: Impact of any consolidated level adjustment to net operating losses at the legal entity level.

   8. NLossNC — Net Operating Loss - Non-Current: Any other activity related to net operating losses that are non-current.

7. Expand the NAttribT — Total National Tax Attributes category, and enter data for the following symbols:

   1. NatTaxAffTempCur — Tax Attribute - Current: Current tax attributes.

   2. NatTaxAffTempNonCur — Tax Attribute - Non-Current: Non-current tax attributes

8. Expand the TaxCrT — Total Tax Credits - Temporary category, and enter data for the following symbols:

   1. TaxCrForM — Foreign Tax Credits - Temporary - Manual: Temporary national foreign tax credits.

   2. NatTaxCrForCY — Creditable Foreign Tax Credits - Temporary: Creditable national foreign tax credits.

   3. NatTaxCrForCY — Non-creditable Foreign Tax Credits - Temporary: Non-creditable national foreign tax credits.

   4. TaxCrAMT — US Alternative Minimum Tax: US Alternative Minimum Tax (AMT).

   5. GenBusCr — General Business Credits: General business credits.

   6. TaxCrOth — Other Tax Credits - Temporary - Manual: Other temporary national tax credits.

9. Expand the ValAllow — Total Valuation Allowance category, enter data for the following symbols:

   1. NatValCT — Valuation Allowance - Current Temps: Valuation allowance - current temps.

   2. NatValNCT — Valuation Allowance - Non-Current Temps: Valuation allowance - non-current temps.

   3. NatValNOL — Valuation Allowance - NOLs: Valuation allowance - net operating losses.

   4. NatValTaxCr — Valuation Allowance - Credits: Valuation allowance - credits.

   5. NatValGWPA — Valuation Allowance - Goodwill/Purchasing Accounting: Valuation allowance for goodwill or purchasing accounting.

10. When you are finished, click Submit.