Interim Tax Provision

The Interim Tax Provision is the process to estimate the tax expense in interim periods based on the estimated annualized effective tax rate. The estimated annualized effective tax rate can be developed in the forecast scenario and applied against year-to-date NIBT to determine the income tax expense before discrete adjustments. You can calculate either total tax expense or both current and deferred tax expense based on the effective tax rates developed.

You can enter additional discrete adjustments on a tax affected basis. The net of the calculated tax and discrete items is considered the provisioned tax amount.