State Temporary Differences - Tax Basis

The State Temporary Differences - Tax Basis screen is accessed under Data Input > State in the Provision and Estimated Payments datasets and under Data Input > Forecast/Actual > State in an Interim dataset.

Note: Tax Basis Temporary Difference screens allow you to enter amounts as purely tax balances, with or without book or net of book.

 

Provision and Interim (Actual section) datasets only

•There are two sections: Detail and Analysis. By default, the Detail section displays first. All users can enter and modify data in both sections, also by default. Administrators can use the DEFAULT_TD_TAB and RESTRICT_TD_TABS dataset parameters to change the section that displays by default and determine whether or not Read/Write users can enter data in the Details section.
•Data entered in the Detail section is translated using the Deferred Analysis default rules and displays in the Analysis section.
•For information on the Analysis section, go to the Analysis page.

 

All Datasets

•The Activity, Deferred, and Balance Sheet Only column amounts impact the tax provision differently.
•Each state temporary difference line defaults to being tax effected using the unit rate. The beginning and ending state and unit rates can be overridden on a line-by-line basis. If only the beginning or ending rate is overridden, you must populate the fields for both rates. If one is not populated, it defaults to a zero rate.
•By default, each state temporary difference line is also tax-affected by the default state rates as defined under the State Details screen.
•Enter temporary differences that are recognized for state, but not federal purposes.
•To import information to the State Temporary Differences - Tax Basis screen, complete the appropriate fields on the #STD# St TD-Tax Basis sheet in the Import Numbers template.
•To update the State by State Override Deferred Tax rate on all State Temporary Differences, complete the appropriate fields on the #STDR# State Temp Diff Rates sheet in the Import Update Rates template. To generate a State Temporary Difference based on the Federal Temporary Difference, complete the appropriate fields on the #GSTD# Generate State Temp Diff sheet in the Import Update Rates template.
•If you wish to adjust the same state temporary difference more than once, you must make additional entries using different tag letters or classes.

 

Note: To use default unit rates type U in the rate columns when importing.

 

Screen Entry Fields

Code - Description

The code and description are established by an Administrator for the temporary difference.

 

Type

There are two types of temporary differences balances - Current and Non-Current. Select the type that best relates to the balance sheet account where the deferred tax asset or liability should be represented.

 

Tag

The tag letter identifies each line entered in the originating source.

 

Class

The class identifies each line entered in the originating source.

•The DEF-Default is the default class and assigned in administration.
1.Select Administration and then Manage Data Options.
2.Click Classes/Subclasses.
3.Select System.
4.Select DEF-Default.

 

Subclass

The subclass identifies each line description entered in the originating source. You can select Next Value as the subclass and the application generates the next "Code" number for the selected Code, Type and Class.

•The Default-Default is the default subclass and assigned in administration.
1.Select Administration and then Manage Data Options.
2.Click Classes/Subclasses.
3.Select System.
4.Select DEF-Default.
5.Select Default-Default.

 

Beginning Balance

The cumulative temporary difference balance rolls forward from the prior dataset. The beginning balance can be overridden manually or with an import.

Note: The administrator has the ability to lock beginning balances, and the Beginning Bal column does not allow data entry for Read/Write Users.

Data Entry_Temp_Lock Beg Bal

 

Activity

•Activity impacts the current and deferred provision, as well as deferred balances.
•Positive amounts increase and negative amounts reduce taxable income. Amounts should be entered in local currency. They are translated to reporting currency using the unit's weighted average FX rate.

 

Deferred

•Deferred impacts the deferred provision, as well as deferred balances.
•Typically this entry type is used for the impact of valuation allowances or adjustments on prior year balances.

 

Balance Sheet Only

•Balance only impacts deferred balances.
•Typically this entry type is used for the impact of equity or other comprehensive income items.
•The State Balance Sheet Only (BSO) adjustment on the Tax Provision (State) report removes the BSO Adjustment from the State Deferred Provision.

 

Override Unit Rates

You can override the unit rates designated under Unit Details/State Details for a specific temporary difference line by clicking the Check to override unit defaults check box.

 

Notes:

•A Default Type can be set by your System Administrator, and you may not have the ability to select between C -Current and NC -Non-Current.
•The System Administrator may have allowed the ability to deviate from the Default Type and allow you to select between C -Current and NC -Non-Current.
•The Temp Diffs Discrepancy report will be available to review the Temporary Differences - Tax Basis that have been overridden and deviate from the default type set up by the administrator.
•Contact your Administrator if you have questions about the Default Type set up.