Completing the regional actual tax process
Completing the regional actual tax processThe Tax Provision system calculates a Regional current provision, a Regional deferred tax provision, a Regional Effective Tax Rate (ETR), and a Regional tax account rollforward. This section provides information on the ASC 740 Regional Actual tax process. For information on the regional interim process, see Completing the Regional Interim tax process.Th...
Updating and reviewing the current regional provision
Updating and reviewing the current regional provisionTax Provision calculates a current regional provision for each entity using the following calculation:CalculationLinestart withnational taxable income/lossplusregional income tax adjustmentsequalsregional tax baseplusregional permanent and temporary differencesequalsregional taxable income/loss before net operating lossesplusregional net oper...
Inputting top-side reporting currency adjustments
Inputting top-side reporting currency adjustmentsTax Provision allows you to enter top-side adjustments, which are adjustments that are recorded after the legal entity general ledgers have been closed.Users can access the Reporting Currency Only Adjustments input app (RA0599) to provide flexibility where the translations in the tax database may not match the financial statements.Reporting Curre...
Updating acquisitions information
Updating acquisitions informationIf 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...
Updating and reviewing gross regional temporary difference rollforward activity
Updating and reviewing gross regional temporary difference rollforward activityThe standard provision logic is used for the calculation of the regional gross temporary difference rollforward as discussed in the national gross temporary difference section. The same temporary differences used for the national gross temporary difference rollforward are also used for the Regional gross temporary di...
Reviewing temporary difference rollforward activity
Reviewing temporary difference rollforward activityOnce regional temporary difference rollforward activity has been updated in the Temporary Differences input app (RA0301), you can review the related reports. Use the following table to determine the related reports to use for the temporary difference method used by your company:MethodReports to use…Temporary Difference methodDeferred Tax Proof ...
Inputting top-side reporting currency adjustments for net income before tax
Inputting top-side reporting currency adjustments for net income before taxTax Provision allows you to enter top-side adjustments, which are adjustments that are recorded after the legal entity general ledgers have been closed.Use the NIBT Reporting Currency Only Adjustments input app (RA0299) to provide flexibility where the translations in the tax database may not match the financial statemen...
Reviewing the deferred tax rollforward reports
Reviewing the deferred tax rollforward reportsThe standard provision logic as discussed in the national deferred tax rollforward section is used in calculation of the Regional deferred tax rollforward. The Regional deferred tax rollforward reports contain the same temporary difference accounts as the Temporary Differences input app (RA0301). The regional deferred tax reports contain the same co...
Reviewing the effective tax rate, reconciliation, and total provision
Reviewing the effective tax rate, reconciliation, and total provisionTax Provision calculates the effective tax rate (ETR) reconciliation automatically at the statutory and consolidated rates. The statutory and consolidated rate reconciliation reports capture the following items on a gross and tax affected basis:net income before taxnet income before tax adjustmentsGAAP to STAT permanent differ...