Deferred Balance Report in the Balance Sheet View
| • | Beginning Balance column balances are converted using the Beginning Spot Rate and the Beginning Tax Rate. |
| • | The Rate Change column creates an adjustment to restate the Beginning Balance column at the Ending Spot Rate and the Ending Tax Rate. |
| • | All other Columns are converted using the Ending Spot Rate and the Ending Tax Rate. |
| • | The Ending Balance is the sum of the columns, and is effectively the ending balances converted using Ending Spot Rate and the Ending Tax Rate. |
Example of Change in the Deferred Rate from 35% to 40%:
Example of Change in the FX Rate from .5000 to .4500:
Example of Change in the Deferred Rate from 35% to 40% and FX Rate from .4500 to .5500:
Deferred Balance Report in the Income Statement View
| • | Currency Translation Adjustment |
| • | Deferred Balances in USD are translated from the Local Currency Balances using Beginning and Ending Spot FX Rates |
| • | USD Change in Deferred Balances |
| • | Deferred Expense in USD is translated from Local Currency Activity using Weighted FX Rates |
| • | USD Deferred Expense |
| • | Currency Translation Adjustment Computation |
| • | Adjusts the Weighted Average FX Impact and the Ending Spot FX Rate |
Detail of CTA Calculation Components
Information for the Calculation: |
|
|
|
Beginning Temporary Difference Balance |
100,000 |
|
|
Temporary Difference Activity |
10,000 |
|
|
|
|
|
|
Beginning FX Spot Rate |
0.45 |
Current Tax Rate |
37% |
Ending FX Spot Rate |
0.55 |
Beginning Deferred Tax Rate |
35% |
Weighted Average FX Rate |
0.50 |
Ending Deferred Tax Rate |
40% |
j |
(14,141) |
= 100,000 * 35% / 0.55 - 100,000 * 35% / 0.45 |
k |
(673) |
= 10,000 * 37% / 0.55 - 10,000 * 37% / 0.50 |
l |
(909) |
= 100,000 * (40% - 35%) / 0.55 - 100,000 * (40% - 35%) / 0.5 |
m |
(55) |
= 10,000 * (40% - 37%) / 0.55 - 10,000 * (40% - 37%) / 0.5 |
CTA Amount Displays on the Tax Provision Report
