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 will not calculate the deferred taxes. Any rate changes that result from acquisition information are calculated by the system.

Acquisitions input app (RA0303)

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.
• 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

  Identifies the temporary differences as current or non-current.

• GrsAcqCur_ASC — Acquisitions Gross

  Use this Element to input the gross amount for the temporary difference at the date of acquisition for the national temporary differences.

• NetRAcqCur_ASC_Input — Regional Acquisitions Net

  Use this Element to input the deferred tax amount for the national temporary differences.

• NetRRCAcqC_ASC_Input — Regional Deferred Tax Impact - Change in Tax Rates ACQ CUR

  Use this Element to input 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 therefore requiring an adjustment to the national deferred tax expense.

To update acquisitions:

1. In the Tax Provision navigation pane, click Data Collection.
2. Expand Regional 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 RA0303 - Acquisitions.lvapp. The input app opens in the workspace.
5. In the RegTemp — Total Regional 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.

   3. RTemp — Company-specific: Company-specific regional temporary differences.

6. Expand the RegTmpCFDLoss_ASC — Total Regional Temporary Differences and NOLs category, and enter data for the following symbols:

   1. RegNLossCYGA — Regional Net Operating Loss - CY Generated - Adjustment: Manual adjustment for the calculated net operating loss.

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

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

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

7. Expand the RegTaxCrT — Total Regional Tax Credits category, and enter data for the following symbols:

   1. RegOthTaxCY — Regional Other Tax Credits - Temporary - Current: Current regional tax credits.

   2. RegOthTaxNC — Regional Other Tax Credits - Temporary - Non-Current: Non-current regional tax credits.

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

   1. RegTaxAffTempCur — Regional Tax Attribute - Current: Current tax attributes.

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

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

   1. RegValCT — Regional Valuation Allowance - Current: Valuation allowance - current temps.

   2. RegValNCT — Regional Valuation Allowance - Non-Current: Valuation allowance - non-current temps.

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

   4. RegValTaxCr — Regional Valuation Allowance - Credits: Valuation allowance - credits.

10. When you are finished, click Submit.