Overview

Oracle Hyperion Tax Provision calculates your company’s global tax provision, effective tax rate, and deferred tax for tax provisioning purposes. The application is designed to comply with the standards for accounting for income taxes under US GAAP ASC740 and IFRS IAS12.

Tax Provision may use the same platform as your corporate close process and therefore may be directly integrated utilizing the same metadata. As one solution, consolidated pretax income can be reported by legal entity to calculate the consolidated income tax provision. When Corporate Accounting finalizes the period-end close, and all required amounts — such as permanent and temporary differences, tax rates, and foreign exchange rates—are entered in the system, Tax Provision automatically calculates the current and deferred income tax provisions by legal entity and by jurisdiction.

From the provision calculation, Tax Provision produces a journal entry and draft income tax financial statement disclosure, complete with supporting schedules. The supporting schedules provide details for the required disclosures in the income tax footnote to the financial statements, including:

• Pretax income by foreign and domestic entities

• Consolidated tax provision by current and deferred tax expense

• Consolidated and statutory effective tax rate reconciliations

• Composition of deferred tax assets, liabilities, and valuation allowance (as required)

• Tax loss expiration table