FORECAST TEMPORARY DIFFERENCES

In the Forecast Temporary Diffs page, users can enter differences that will reverse in the future. Examples include temporarily disallowed expenses, accruals, and reserves which will be deducted in later years, as well as book income not subject to current taxation under the statutory laws of the country. In order to view this page, the page must be selected in Manage User Permissions.

 

Enter a separate line item for each temporary difference:

1.Select the Code-Description and then Tag or Class/Sub-Class.
2.Indicate whether the item is classified as current or non-current.
3.The beginning balance, if any, is automatically pre-populated.
4.Enter the current activity amount in local currency.
5.There are also fields for entering deferred only adjustments and balance sheet only adjustments.
6.The ending balance, if any, is automatically populated.
7.Click Add New to create the temporary difference.

 

Notes:

•Refer to the Where to Enter Items in ONESOURCE Tax Provision section for more information on the different types of adjustments; for example, current activity, deferred only, and balance sheet only.
•If a new temporary difference item is required, contact the Corporate Tax Department.

 

After a temporary difference item is created, users can edit or delete it by clicking the appropriate icon. Click the pencil icon to edit the entry. Select Save Changes after making any changes. Users can attach files to individual temporary difference item on this page. If users have supporting documents, click the paper clip or filing cabinet next to the item. Also, users have the ability to add and update notes to a line item. Users may click on the notes icon then add notes.

The impact of individual temporary differences on the tax provision can be viewed on the Forecast Rate report.