Longview Tax Overview

Tax Provision calculates your company’s global tax provision, effective tax rate, and deferred taxes for tax provisioning purposes. Since Tax Provision uses the same technological platform as your corporate performance management solution, the tax reporting process is directly integrated into the corporate close process. As one solution, consolidated pre-tax income can be reported by legal entity to accurately calculate consolidated income tax provision and deferred taxes.

When corporate accounting finalizes the period end close and all necessary amounts, such as permanent and temporary differences, tax rates, factors, and foreign exchange rates, have been entered in the system, Tax Provision automatically calculates the current and deferred income tax provisions by legal entity and by jurisdiction. From the provision calculation, Tax Provision produces a draft income tax disclosure complete with supporting schedules. This detail supports the required disclosures in the income tax disclosure, including:

• a breakout of pre-tax income between foreign and domestic entities
• a breakout of the consolidated tax provision between national current and deferred, and foreign current and deferred taxes
• a reconciliation of the company’s statutory tax rate and its consolidated effective tax rate
• the make up of net deferred tax assets, liabilities, and valuation allowance (where applicable)

IAS and ASC

IAS 12 (International Accounting Standard) is the IFRS (International Financial Reporting Standard) used for income taxes in most areas of the world. The other common standard is ASC 740 (US GAAP), which is used predominantly in the United States. Tax Provision supports both the IAS 12 and ASC 740 tax standards.

The Tax Provision process varies depending on the standard used by your company. You have access only to the relevant input apps and reports for your company’s tax standard.

In addition, Longview Tax includes user guides that are specific to the tax standard: the Tax Provision ASC User’s Guide and the Tax Provision IAS User’s Guide. Make sure to use the appropriate guide for your tax standard.

Tax input apps and reports

Longview Tax includes multiple preconfigured tax input apps and reports for IAS 12 and ASC 740. Tax input apps and reports are numbered in order of typical use.

Tax input apps and reports adhere to the following naming convention:

[X|Y](N|R|S|C)(A|F|G|S|C)(0|1|F|C)[0|1](xxx)[R|S|G]

Pillar Two input apps and reports adhere to the following naming convention:

(P2)(xxx)

where:

• X|Y is an optional prefix. X indicates that it is an administrative input app or report. Y indicates that it is a calculation reference report.
• The 1st character is N (National), R (Regional), S (Multi-Regional), or C (Common)
• The 2nd character is A (Actual), F (Forecast), G (Multi-Regional Group), S (Multi-Regional Separate), or C (Common)
• The 3rd character is 0 (ASC 740), 1 (IAS 12), F (Multi-Regional Interim) or C (Common)
• For Multi-Regional Interim the 4th character is 0 (ASC 740), 1 (IAS 12)
• xxx is a three-digit identifier, ranging from 001 to 999
• The last character is used for multi-regional provision reports and is R (All Regions), B (Blended Deferred), S (Separate Nexus Regions), or G (Group Nexus Regions)

Examples:

Note: You can submit data to administrative input apps only if you are signed in as an administrator.