Temporary Differences - Book/Tax Basis

The Temporary Differences - Book/Tax Basis screen is accessed in Data Input > Federal in the Provision and Estimated Payments datasets. You have the ability to enter beginning and ending balances for both book and tax balances. ONESOURCE Tax Provision calculates the tax adjustment by taking the difference between the beginning and ending balances.

 

Data Input - Temporary Differences - Book Tax Basis

2014.0 data entry temp diff

Note that this mapping functionality is not yet available for the Excel Add-In.

 

Provision Dataset only

•In a Provision dataset, there are two sections: Detail and Rollforward. 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.
•The system computes the Tax-Book Difference using the book and tax amounts entered in the Detail section. This information also displays in the Rollforward section.
•For information on the Rollforward section, go to the Rollforward page.

 

Provision and Estimated Payments Datasets

•The Activity and Deferred column amounts impact the tax provision differently.
•Each temporary difference line defaults to being tax effected using the unit rate.
•To import information to the Temporary Differences - Book/Tax Basis screen, complete the appropriate fields in the #UTDAM#  U Temp Diff-Bk Tx Basis tab in the Import Numbers template.
•If you wish to adjust the same temporary difference more than once, you must make additional entries using different classes or tag letters.

 

Note: To use default unit rates, enter U in the rate columns when importing. For more information on importing, refer to the Importing Templates documentation.

 

Screen Entry Fields

Code-Name

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

 

Adj Type

There are two types of temporary difference 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.

 

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.

 

Override Unit Rates

You can override the unit rates designated under Unit Details for a specific temporary difference line by clicking the Override unit rates check box.

 

Months

The months entered for both book and tax are used to compute the ratable amount applicable to the period.

 

Beginning Balance

The beginning balance rolls over from the prior period and should represent the remaining temporary differences for book and tax that should be allocated. 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.

 

Enter Activity/Enter Ending

You can choose the entry type in Administration.

 

Tag Datasets

1.In Administration, select Manage Temp Diff Postings (Tag Only).
2.For a Code, select Use Ending and then Temp Diff Entry Type.

 

Class Datasets

1.In Administration, select Manage Data Options and then Classes & Subclasses.
2.Select Component Types.
3.For each Class, choose Post to Ending Balance and the Data Entry Rule.

 

Enter Activity/Enter Ending

•Enter Activity/Ending applies to book and tax balances.
•Enter Activity/Deferred/Balance Sheet - The system automatically calculates the Ending balance, which is Read-Only.
•Enter Ending - When Use Ending or Post to Ending Balance is selected, the system automatically calculates the Activity/Deferred/Balance Sheet, which is Read-Only.

 

Activity

•The activity is the appropriate amount of the beginning balance based on the months entered. In a dataset that was not rolled over, you must populate this field.
•Activity impacts the current and deferred provision, as well as deferred balances.
•Positive amounts increase and negative amounts reduce the taxable income. Amounts are entered in local currency. They are translated to the reporting currency using the unit's weighted average FX rate.

 

Deferred

Deferred impacts the deferred provision, as well as the deferred 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 Balance Sheet Only (BSO) adjustment on the Tax Provision report removes the BSO Adjustment from the Deferred Provision.

 

Ending Balance

The ending balance is based on the months entered. You must populate this field if the dataset is not rolled over. Select the class assigned in Deferred Rollforwards to post and enter the ending balance.