LOCAL ACTUAL TEMPORARY DIFFERENCES

In the Local Actual Temporary Diffs page, users can enter differences between National Taxable Income and Local Taxable Income that are temporary in nature; the differences will reverse in the future. Because temporary differences often flow from the national calculation, only the difference between the national and local amounts for a temporary difference is entered on the Local Actual Temporary Diffs page. Refer to Scenario 2 on the Local Jurisdiction page of this manual, in which the amount entered for the local temporary difference would be 20,000.

 

Enter a separate line item for each local actual 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 fields for entering deferred only adjustments and balance sheet only adjustments.
6.The ending balance, if any, is automatically calculated.
7.Click Add New to create the local actual temporary difference.

 

After a local actual temporary difference item is created, users can edit or delete the item by clicking the appropriate icon.

1.Click the pencil icon to edit the entry.
2.Select Save Changes after making any changes.

 

•Users can attach files to an individual local actual temporary difference item on this page. If users have supporting documents, click the paper clip or filing cabinet next to the item.
•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 local actual temporary difference on the tax provision can be viewed on the Local Interim Provision report.
•Deferred Only actual temporary differences will appear on the Effective Rate report.

 

Note: 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.