1. User's Guide
  2. National Tax Process
  3. Deferred Tax

Deferred Tax

The Deferred Tax form is used to view the deferred tax calculation.

The form contains the following members in the columns (across):

  • Opening—Opening Balance—The tax effect of the prior year end temporary differences.

  • NBROpening—Opening Balance—NBR—The Net Benefit of Regional (NBR) deferred tax on the opening balance when the regional income taxes (for example, U.S. state income taxes) are deductible for federal tax purposes.

  • OpeningTotal—Net Opening Balance—The sum of Opening and NBROpening.

  • PYAdj—Prior Year Adjustment (Restatement)—The tax effect of prior year adjustments.

  • NBRPYAdj—Prior Year Adjustment—NBR—The Net Benefit of Regional deferred tax on prior year adjustments when the regional income taxes (for example, U.S. state income taxes) are deductible for federal tax purposes.

  • PYADJTotal—Net Prior Year Adjustment—The sum of PYAdj and NBRPYAdj.

  • OpeningAdjusted—Opening Balance as Adjusted—The sum of OpeningTotal + PYAdjTotal.

  • CYSys—Current Year System—The tax effect of the current year book-tax difference automated in the current provision.

  • CYSysReversal—Current Period System Reversal—The tax effect of the reversal of the current year book-tax difference automated in the current provision.

  • CYSysTotal—Automated Total—The sum of CYSys and CYSysReversal.

  • CYAdj—Current Period Adjustment—The tax effect of the current year book-tax difference input in the current provision.

  • CYAdjReversal — Current Period Adjustment Reversal—The tax effect of the reversal of the current year book-tax difference manually input in the current provision.

  • CYAdjTotal—Adjustment Total—The sum of CYAdj and CYAdjReversal.

  • CY—Total—The sum of CYSysTotal and CYAdjTotal.

  • RTADO—Return to Accrual—The tax effect of the adjustments to temporary differences based on the Return to Accrual form.

  • AuditDO—Audit Settlements—The tax effect of the adjustment to temporary differences resulting from audit settlements.

  • OtherSys—Other Adjustments—Automated—The tax effect of the adjustments to temporary differences resulting from any other type of adjustment automated in Tax Provision.

  • OtherDO — Other Adjustments—The tax effect of the adjustment to temporary differences resulting from any other type of adjustment.

  • TransfersDO—Transfers—The tax effect of the adjustment to temporary differences resulting from transfers of Assets/Liabilities and the related temporary difference.

  • PYAAdjDO—Prior Year Adjustments—The tax effect of the adjustment to temporary differences resulting from prior year adjustments.

  • ContingencyDO—Contingency—The tax effect of the adjustment to temporary differences resulting from tax contingencies related to temporary differences.

  • TempDiffCyTotal—Temporary Differences P&L Total—The total of CY, RTADO, AuditDO, OtherDO, TransfersDO, PYAAdjDO, and ContingencyDO.

  • RCOpen—Impact from Change in Tax Rates—Opening—The tax effect of tax rate changes as it relates to the beginning balance.

  • RCCY—Impact from Change in Tax Rates—Opening—The tax effect of tax rate changes as it relates to current year activity.

  • RCAcqNP—Impact from Change in Tax Rates—Acquisitions—The tax effect of tax rate changes as it relates to acquisitions.

  • RCTotal—Impact from Change in Tax Rates—The sum of RCOpen, RCCY, and RCAcqNP.

  • NBRCY—Net Benefit of Region—The tax effect of the Net Benefit of the Regional deferred tax expense as it relates to current-year activity.

  • CYTotal—Total Deferred Tax Expense—The sum of CY, RTADO, AuditDO, OtherDO, TransfersDO, PYAAdjDO, ContingencyDO, RCTotal, and NBRCY.

  • AcqNP—Acquisitions—The tax effect of the adjustment to temporary differences resulting from the acquisition of assets and liabilities and the related temporary difference.

  • RCAcqReversal—Impact from Change in Tax Rates—Acquisitions—Reversal—The tax effect of the adjustment to rate. It is the reversal of the amount in RCAcqNP.

  • DisposalsNP—Disposals—The tax effect of the adjustment to temporary differences resulting from the disposals of assets/liabilities and the related temporary difference.

  • EquitySysNPDT—Equity Automated—The tax effect of the adjustment to temporary differences resulting from equity transactions.

  • EquityAdjNPDT—Equity Adjustment—The tax effect of the adjustment to temporary differences resulting from equity transactions.

  • EquityNP—Equity Automated—EquitySysNP—The total of EquitySysNP and EquityAdjNP.

  • EquityRTANP—Equity Prior Year—The tax effect of the adjustment to temporary differences resulting from equity transactions and return filing.

  • EquityOtherNP—Equity Other—The adjustment to temporary differences resulting from all other equity transactions. This amount is manually input and does not affect the deferred tax expense.

  • RCEquityTotal—Impact from Change in Tax Rates in Equity—The tax effect of tax rate changes for accounts identified as equity.

  • EquityNPTotal—Total Equity Adjustments—The total adjustment to temporary differences resulting from equity transactions. This is the sum of EquityNP, EquityRTA, and EquityOtherNP.

  • NBRNP—Non Provision NBR—The tax effect of the Net Benefit of the Regional deferred tax expense as it relates to nonprovision activity.

  • NPTotal—Total Non Provision—The sum of AcqNP, RCAcqReversal, DisposalsNP, EquityNPTotal, and NBRNP.

  • Closing—Closing Balance—The sum of OpeningAdjusted, CYTotal, and NPTotal.

The form contains the following members in the rows (down):

  • TempGSTotal—Total Temporary Differences (GAAP to Stat)—User-defined upon implementation.

  • TempSTTotal—Total Temporary Differences (STAT to Tax)—User-defined upon implementation.

  • EquityTempTotal—Total Equity Temporary Differences—The parent of base accounts that are equity in nature and are user-defined upon implementation.

  • TaxLossesTotal—Total Tax Losses—Used for Tax Losses that are deferred. These are system-defined, and two accounts are provided: Current Year and Carryforward. Carryforward is linked to the Tax Losses form. See Tax Losses.

  • TaxCreditTotal—Total Tax Credits—The parent of system-provided base accounts that are used for Tax Credits that are deferred.

  • TaxAttribTotal—Total Tax Attributes—User-defined upon implementation. Amounts are generally entered on a tax-effected basis in the temporary difference rollforward and are considered adjustments to deferred tax.

  • VATotal—Total Valuation Allowance—Used to record valuation allowances against assets as required. Four accounts are provided: Current, Noncurrent, Credits, and TaxLoss. Credits are entered on a tax-effected basis, while amounts entered in the other accounts are entered on a pretax basis.

The form also provides the classification of deferred tax assets and liabilities as follows:

  • Closing—Current Asset

  • Closing—Current Liability

  • Closing—Noncurrent Asset

  • Closing—Noncurrent Liability

The Current or Non-Current setting, together with the value of the Closing—Total Closing Balance, defines in which column the amount is displayed. If this balance is positive, then the amount is classified as an Asset. If this balance is negative, then the amount is classified as a Liability. Valuation allowance is classified using a factor of -1 (for example, Closing*-1) and is therefore always reflected as a contra-asset.