1. Administrator's Guide
  2. Managing Tax Losses
  3. Using the Tax Loss Schedule

Using the Tax Loss Schedule

The Tax Loss schedule is designed to capture the detailed composition of the tax losses, including the year generated and the corresponding year of expiration. You can integrate the process with the Current Provision and Temporary Difference by linking a Tax Loss Detail account with a Tax Loss Carryforward account.

In the Tax Loss schedule, the tax year generated is maintained in the rows, including the current year and 20 previous years, and one category for losses that originated over 21 years ago.

The Tax Loss data form enables you to capture the Year of Expiration and Year of Origination. You manually enter the Year of Expiration. If you do not enter a Year of Expiration, the system automatically sets it as NoExpiration. The system can automatically populate the Year of Origination using the OnDemand rule in the data form. The system can also copy the Year of Expiration using the OnDemand rule in the subsequent period.

The data form provides a rollforward in columns of the tax loss balances by year as follows:

  • Original – the amount of the original loss or beginning balance for the period. This amount will be calculated from the prior year ending balance (for example, P12, or Q4) unless it originated in the current year.

  • Prior Year Adj – you manually enter this amount for any prior period adjustment required. This amount is copied to Temporary Differences in the Prior Year Adj column when the Tax Loss Detail account is linked using the TaxDetail user-defined property. See Tax Detail User-Defined Property.

  • Opening as Adj – this amount is the sum of the first two columns: Original and Prior Year Adj.

  • Created – this is the amount of the current year tax loss to be deferred. This amount is transferred from the current provision when the Tax Loss Detail account is linked using the TaxDetail property. This amount is copied to Temporary Differences in the Automated column when the Tax Loss Detail account is linked using the TaxDetail user-defined property.

  • Created Automated - this is the amount of the current year tax loss to be deferred. This amount is transferred from the current provision when the Tax Loss account has automation set up using the Custom screen. The amount at Created Total is copied to Temporary Differences in the Automated column.

  • Expiration – you manually enter the amount of the current year tax loss expiring. This amount is automatically copied to the Temporary Difference in the Other Adjustments (Deferred Only) column when the Tax Loss Detail account is linked using the TaxDetail property.

  • Expiration Automated - When the Tax Loss account has automation set up for automatic expiration using the Custom screen, then the current year expiration amount automatically expires only in the last period. The amount at Expiration Total is copied to Temporary Differences in the Other Adjustments System (OtherSys) column.

  • Return to Accrual Adjustment - you manually enter this amount for the adjustment in the current period due to Return to Accrual adjustments as a result of the filing of tax returns. This amount is not automated from the RTA schedule and does not automate to Temporary Difference.

  • Other Adjustments – you manually enter this amount for an adjustment in the current period. This amount is automatically copied to the Temporary Difference in Other Adjustments (Deferred Only) when the Tax Loss Detail account is linked to a Tax Loss Carryforward account using the TaxDetail user-defined property.

  • Acquisition - you manually enter this amount for the tax losses acquired in the current period. This amount is not automated from the Acquisition schedule and does not automate to Temporary Difference.

  • Available – this is the amount of tax losses available to offset taxable income in the current period. The amount is the sum of the Opening as Adj, Created, Expiration, Return to Accrual Adjustment, Other Adjustments and Acquisition column amounts.

  • CY Utilization – you manually enter the amount of tax losses utilized in the current period. This amount is transferred to the current provision when the Tax Loss Detail account is linked using the TaxDetail property. This amount is copied to Temporary Differences in the Automated column when the Tax Loss Detail account is linked using the TaxDetail property.

  • CY Utilization Automated– this is the amount of the current year tax loss to be utilized. This amount is transferred from the current provision when the Tax Loss account has automation set up using the Custom screen. The amount at Utilization Total is copied to Temporary Differences in the Other Adjustments System (OtherSys) column

  • Carryforward – this is the amount of tax loss carried forward. It is the sum of the Available and CY Utilization columns.