LOCAL TEMPORARY DIFFS

In the Local Temporary Differences page, users can enter differences between National Taxable Income and Local Taxable Income that are temporary in nature; for example, these 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 Temporary Differences 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 25,000.

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Enter a separate line item for each local 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.Type the current activity amount in local currency.
4.There are fields for entering deferred adjustments and balance sheet only adjustments.
5.Click Add New to create the local temporary difference.

 

After a local 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 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 an individual local temporary difference on the tax provision can be viewed on the Local Tax Provision report.

 

Global Access users can enter information in the current activity, deferred only, and balance sheet only fields using the income statement approach. Users can type an ending balance amount and have the program calculate the current activity using the balance sheet approach.

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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.