Updating And Reviewing Asset Depreciation

This section applies to Canadian entities and explains the input apps required to process depreciable assets for the tax year. Tax Provision has several input apps and reports to facilitate in calculating Capital Cost Allowance and Cumulative Eligible Capital for depreciable assets.

The asset depreciation schedules include:

• Capital Cost Allowance input app (NA1921)
• Cumulative Eligible Capital input app (NA1922)
• CCA Restricted Pools input app (NA1923)
• CCA Unrestricted Pools input app (NA1924)

Capital Cost Allowance input app (NA1921)

This input app is available only for Canadian entities and is used by enterprises filing Canadian tax returns to claim depreciation on assets such as buildings, furniture, and equipment. The Canada Revenue Agency has defined various classes of assets, which have a different percentage for the claimable amount. Depreciation classes in Tax Provision are represented by symbols in the Elements dimension.

You must update capital cost allowance information for every relevant class of asset. Your Tax Provision system contains preconfigured classes of assets. Land and Other classes have been added so that you can reconcile your Capital Cost Allowance with your company’s capital asset subledger.

For more information on classes, refer to the Canada Revenue Agency web site.

Depreciation classes in Tax Provision are represented by the following symbols in the Elements dimension (down):

To update the capital cost allowance:

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 NA1921 - Capital Cost Allowance.lvapp. The input app opens in the workspace.
5. Update beginning of year adjustments to Undepreciated Capital Cost (UCC) in the UCCBOYA — BoY Adjusted category by entering data for the following accounts for each relevant class:

   1. UCCBOY — BoY UCC: Beginning of year amount. This value is automated from the rollover, but can be entered manually during initial configuration.

   2. UCCBOYAdj — Opening Adjustments: Adjustments to the beginning of year amount.

6. Update net additions in the UCCNetAdd — Net Additions category by entering data in the following accounts for each relevant class:

   1. UCCAdd — Additions: Asset Purchases amount.

   2. UCCAddAdj — Additions Adjustment: Adjustments to Additions.

   3. UCCAdj — Adjustments: Other adjustment amounts.

   4. UCCProceed — Proceeds: Proceeds from the sale of assets amount.

7. Update the net addition reduction percentage in the UCCRed — Reduced UCC category by entering data for the following accounts for each relevant class:

   1. UCCAddPct — Reduction %: Reduction percentage to apply to net  additions.

8. Expand the UCCAvail — Claim Available category, and enter data for the following accounts for each relevant class:

   1. CCARate — CCA Rate: Percentage to apply to each CCA class.

   2. UCCMonth — Month: Numerical representation of the current period. If the fiscal period is 12, enter 12. The claim is multiplied by this number divided by 12.

   3. UCCYears — Year: This applies to straight line (SL) CCA classes. If the class is not a straight line class, enter 1. The claim is multiplied by 1 divided by this number.

9. Expand the UCCClaim — CCA Claim category, and enter data for the following account for each relevant class:

   1. UCCClaimR — CCA Claim Reduction: Amount to reduce UCCAvail — Claim Available.

10. Expand the CA_UCCEOY — EoY UCC category, and enter data for the following accounts for each relevant class:

    1. UCCRecap — Recapture: CCA recapture amount. If the total of all of the decreases exceeds the total of all the increases to the UCC of a class, this excess balance is called a CCA recapture and is included in income in that year.

    2. UCCTermLos — Terminal Loss: Terminal loss amount. If there is a positive balance remaining in the pool after disposition of all property in the class, that balance is called a terminal loss and is deductible from income in that year.

       Note: To enter a Recapture or Terminal Loss amount, you must enter zero (0) as the Percentage rate to apply in the CCARate — CCA Rate account. This is because no CCA claim occurs when there is a Recapture or Terminal Loss of an asset class. The Recapture or Terminal Loss amount entered must result in a rolled up class total of zero (0) in the CA_UCCEOY — EoY UCC category.

11. When you are finished, click Submit.

Cumulative Eligible Capital input app (NA1922)

This input app is used by enterprises filing Canadian tax returns to claim a reduction for depreciation on an eligible capital expenditure on eligible property.

The Elements dimension (across) in this input app contains the GrsCY_IAS — Current Year (Income Statement) symbol.

To update cumulative eligible capital:

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 NA1922 - Cumulative Eligible Capital.lvapp. The input app opens in the workspace.
5. Expand the CECBOYA — BoY Adjusted category, and enter data for the following symbols:

   1. CECBOY — BoY CEC: Beginning of year cumulative eligible capital amount. This amount is automated from the rollover, but can be manually updated during initial configuration.

   2. CECBOYAdj — Opening Adjustments: Adjustments to beginning of year cumulative eligible capital amount.

6. Expand the CECAddT — Additions Total category, and enter data for the following symbols:

1. CECAmalg — Transfer on Amalgamation or Wind-up: Transfer on amalgamation or wind-up  amount.

2. CECAdd — CEC Acquired: Acquired cumulative eligible capital amount.

3. CECAdjA — Other Adjustments: Other additions adjustments amount.

4. CECPost02 — Non-Taxable Portion (post 2002): Non-Taxable Portion (post 2002).

7. Expand the CECDeduct — Deductions Total @ 75% category, and enter data for the following symbols:

1. CECProceed — Proceeds: Proceeds from the sale of eligible capital.

2. CECredDebt — Reduction for Forgiven Debt Obligation: Forgiven debt obligation amount.

3. CECAdjP — Other Adjustment: Other deductions adjustment amount.

8. Expand the CECDEDTOT — CEC CY Deduction category, and enter data for the following symbols:

1. CECDedPct — CEC Deduction %: Percentage to apply to CEC Balance.

2. CECDedPct — CEC Deduction %: CEC deduction percentage to apply.

9. For CECMonth — Month, enter the numerical representation of the current period. For example, if the fiscal period is 12, type 12. The claim is multiplied by this number divided by 12.
10. Expand the CEC Claim Current Year Total category, and enter data for the following symbol:

    1. CECClaimR — CEC Claim Reduction: CEC Claim Reduction amount.

11. When you are finished, click Submit.

CCA Restricted Pools input app (NA1923)

This input app is used by enterprises filing Canadian tax returns to claim depreciation on capital cost allowance restricted pools.

The elements are the restricted categories. For more information on restricted categories, refer to the Canada Revenue Agency web site.

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

To update CCA restricted pools:

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 NA1923 - CCA Restricted Pools.lvapp. The input app opens in the workspace.
5. Enter data for the following symbols:

   1. RESBOY — Opening Balance: Opening balance. This value is automated from the rollover, but can be manually updated during initial configuration.

   2. RESAd — Additions: Additions amount.

   3. RESDisp — Dispositions: Dispositions amount.

   4. RESValAllow — Valuation Allowance: Validation allowance amount.

   5. RESRate — Rate: Rate.

   6. RESProrate — Proration: Proration.

6. When you are finished, click Submit.

CCA Unrestricted Pools input app (NA1924)

This input app is used by enterprises filing Canadian tax returns to claim depreciation on CCA Unrestricted pools. The elements are the unrestricted categories. For more information on unrestricted categories, refer to the Canada Revenue Agency web site.

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

To update claims for CCA unrestricted pools:

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 NA1924 - CCA Unrestricted Pools.lvapp. The input app opens in the workspace.
5. Enter data for the following accounts for the appropriate symbols in the Elements dimension:

   1. URESBOY — Opening Balance: Opening balance. This value is automated from the rollover but can be manually updated during initial configuration.

   2. URESAdd — Additions: Additions amount.

   3. URESDisp — Dispositions: Dispositions amount.

   4. URESFTS — Flow Thru Shares: Valuation allowance amount.

   5. URESRate — Rate: Rate.

   6. URESProrate — Proration: Proration.

6. When you are finished, click Submit.