Acquisitions

Acquisitions in the current year can be input in the Temporary Difference and Deferred Tax columns of the Acquisition form. The system does not calculate the deferred taxes.

Any rate changes that result from acquisition amounts are calculated by the system. Tax rate change adjustments in the system are recorded as P&L expense. To adjust the P&L for tax rate changes that should not affect the P&L, the changes should be entered to Impact to Tax Rate Changes-Adjustment.

The Acquisitions form provides accounting for the following situations:

• The system allows for multiple acquisitions throughout the year.

• For each period, an acquisition input template enables you to input values for each temporary difference, carryforward, credit, and valuation allowance for a company acquired in the current period.