Understanding Tax Provision Calculations
Understanding Tax Provision Calculations
Tax Provision uses preconfigured calculations to let you automate amounts such as loss carryforward and the ending cumulative temporary difference. You can change various interdependent settings to control whether amounts are automated or not automated and the automation method used.
This section provides information on the following topics:
Viewing c...
Viewing Calculation Reference Reports
Viewing Calculation Reference Reports
Tax Provision includes reports that you can use as a calculation reference. Each report in Tax Provision has a matching calculation reference report that discloses the standard calculations for each data intersection. Calculation reference reports are prefixed with the letter Y and include Reference in the report name. For example, the calculation referen...
Understanding Loss Automation
Understanding Loss Automation
Current year loss carryforward amounts can be automatically calculated for entities. The automated calculation of the loss carryforward adjustment is the result of the following related settings:
the Use Loss Carryforward Automation system setting
the Entity Default Setting for Automation of Loss Carryforward Adjustment symbol default setting
the Automate Los...
Understanding Deferred Tax Automation
Understanding Deferred Tax Automation
The ending cumulative temporary difference can be automatically calculated for entities by account. The following Deferred Tax Automation methods are available to automate the ending cumulative temporary difference:
The Temporary Difference Method defines the book-tax basis difference and the portion of the book-tax basis difference that may be permanen...
Understanding Current Tax Automation
Understanding Current Tax Automation
You can set your Tax Provision system to automatically transfer data to current tax for book-tax difference accounts. Current Tax automation calculates values in the current provision (current tax charge) for permanent and temporary difference accounts, and in the gross temporary difference rollforward for temporary difference accounts. Amounts automated i...
Understanding Interim Calculations
Understanding Interim Calculations
Tax Provision provides the ability to prepare a provision based on year-to-date numbers and an interim provision based on an Interim Effective Rate approach. The interim provision process calculates the total interim tax and annualized effective tax rate for each entity.
When you are setting up the entities for the system, use the Calculate Interim legal ent...
Understanding Interim ETR
Understanding Interim ETR
Interim ETR amounts can be calculated for entities at a legal entity, sub-consolidated, or consolidated level. When calculating the interim effective tax rate at a sub-consolidated or consolidated parent level, the legal entities are adjusted to match the parent entity’s ETR, unless they are excluded from the ETR calculation.
The calculation of the interim ETR is a ...
Understanding Period Average Fx Rate
Understanding Period Average Fx Rate
The imputed period average fx rate can be automatically calculated for entities. The automated calculation of the imputed period fx rate is the result of the following setting:
The Use Imputed FX Rate system attribute
The imputed period average fx rate can be overridden for entities.
The imputed period average fx rate will be used by the system to perform ...