Completing The Regional Actual Tax Process
Completing The Regional Actual Tax Process
The following table outlines the IAS 12 regional actual tax process in Tax Provision:
Note: If an owner of a partnership is locked for input, the partnership calculations will fail if changes are submitted to the partnership entity. You can correct this by running the failed partnership calculations for the partnership entity from the Tax Calculation...
Updating And Reviewing The Current Tax Charge
Updating And Reviewing The Current Tax Charge
Tax Provision calculates a current regional tax charge for each entity using the following calculation:
start with regional tax base
plus regional permanent and temporary differences
equals regional taxable income/loss before net operating losses
plus regional net operating losses
equals regional taxable income/loss
multiplied by the region...
Updating Acquisitions Information
Updating Acquisitions Information
If your company had any regional 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 (RA1303)
Use this input app to manually input any temporary differences, net o...
Updating And Reviewing Regional Gross Temporary Difference Rollforward Activity
Updating And Reviewing Regional Gross Temporary Difference Rollforward Activity
Use the Temporary Differences input app and related reports to input and review temporary differences. Temporary differences are classified as either “Current” or “Non-Current” for balance sheet classification purposes. These balance sheet classifications are set by the system administrator.
Tax Provision is set u...
Reviewing The Deferred Tax Account Reports
Reviewing The Deferred Tax Account Reports
Tax Provision calculates a detailed deferred tax and deferred tax charge. Deferred taxes and tax charges are calculated by legal entity and temporary difference.
The standard Tax Provision charge logic as discussed in the national deferred tax rollforward section is used in calculation of the Regional deferred tax rollforward. The Regional deferred t...
Updating And Reviewing The Regional Deferred Tax Not Recognised
Updating And Reviewing The Regional Deferred Tax Not Recognised
The Deferred Tax Not Recognised Proof report lets you view additional calculation information.
Deferred Tax Not Recognised - Proof report (RA1406)
You can use the Deferred Tax Not Recognised Proof report to view additional information related to the Deferred Tax Not Recognised process and calculations.
This report contains the f...
Updating The Deferred Tax Not Recognised
Updating The Deferred Tax Not Recognised
You can use the Deferred Tax Not Recognised input app to adjust the closing regional deferred tax balances generated from the temporary difference information to reach balances that appropriately reflect the regional deferred tax assets and liabilities for your entity. For example, you can choose to not recognize a deferred tax asset created from a tax...
Reviewing The Effective Tax Rate And Total Tax Charge Regional Actual Reports
Reviewing The Effective Tax Rate And Total Tax Charge Regional Actual Reports
Tax Provision calculates the effective tax rate (ETR) reconciliation at the regional statutory level. The statutory report captures the following items on a gross and tax-affected basis from Tax Provision:
net income before tax
net income before tax adjustments
permanent GAAP/IFRS adjustments
permanent adjustments
...
Reviewing The Reconciliation Report
Reviewing The Reconciliation Report
After you review the regional total charge, you can use reports to ensure that the total for the current charge and deferred tax matches your regional statutory and effective tax rates.
Statutory Total Tax Charge Reconciliation report (RA1504)
Use this report to verify that the total of the regional actual current tax charge and regional deferred tax charg...
Updating And Reviewing The Current Tax Accounts
Updating And Reviewing The Current Tax Accounts
You can use the Current Tax Account input app (RA1602) to include additional amounts in the Current Tax Account report that are not populated from other calculations. This includes prior year adjustments and adjustments to current tax balances from acquisitions, disposals, transfers, and tax cash payments or receipts.
Current Tax Account input ...
Inputting Top-Side Reporting Currency Adjustments
Inputting Top-Side Reporting Currency Adjustments
Tax 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 (RA1599) to provide flexibility where the translations in the tax database may not match the financial statements.
Reporting...