Copying Return to Accrual Adjustments

You can copy current and deferred Return to Accrual (RTA) adjustments from one Scenario member to another Scenario member, for one or more ReportingStandards. For example, you can enter RTA adjustments once in the Actual Scenario, and then copy them to a Budget Scenario, or other ReportingStandard, such as US GAAP.

You can copy RTA adjustments from multiple source ReportingStandards, but only from one source Scenario.

The ability to copy RTA adjustments is required if you use an Effective rate-based approach to provisioning. When using this approach, RTA adjustments are accounted for using the discrete method and are recorded in the period they become known as to timing and amount.

For example, you use the Effective rate-based approach during the year. In September, you file tax returns for the prior year. The adjustments become certain as to amount and timing. You prepare the RTA in the Actual Scenario – IFRS_Underlying, and record journal entries in September to reflect the adjustments to tax expense and current and deferred tax assets/liabilities.

The September tax provision calculated using an Effective rate applied to NIBT requires that the RTA adjustments be included as discrete items in the Interim Provision calculation. Discrete items are accounted for in the Outlook Scenario - IFRS_Exceptional. Therefore, the RTA calculated in Actual must be copied to the Interim Provision Calculation. Tax Provision provides the ability to copy the current tax expense adjustment to the Current Provision, and the RTA adjustments to the Temporary Differences.

You define rules for copying RTA Adjustments using the RTA Automation Screen. See Defining RTA Automation Rules.