Tax Losses

The tax loss process is designed to capture the detail composition of the tax losses including the year generated and the corresponding year of expiration. The process is integrated with the current provision and the temporary difference rollforward. The tax year generated is maintained in the rows including the current year and 20 previous years, and one category for losses originated 21+ years ago.

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

• Original Loss (calculated from prior period)—Amount of the original loss, plus

• Created (calculated )—Amount of the current year tax loss coming to be deferred that is coming from the current provision, plus

• Expiration (calculated)—Amount of the current year tax expiring that is automated by the system, equals (subtotal)

• Available (calculated)—Amount of tax losses available to offset taxable income in the current period, plus

• CY Utilization (manual input)—Amount of tax losses utilized in the current period that will be transferred to the current provision, plus

• Return to Accrual adj (manual input)—Amount of tax loss adjusted in the current period due to Return to Accrual adjustments as a result of the filing of tax returns. (Note: Amount goes to the temporary difference rollforward to be written off in RTA Deferred only), plus

• Other Adjustments (manual input)—Amount of tax loss adjusted in the current period due to other adjustments. (Note: Amount goes to the temporary difference rollforward to be written off in Other Adjustments Deferred Only), equals

• Carryforward (calculated)—Amount of tax loss carried forward.

The Tax Losses Form contains data used to consolidate the financial statement footnote disclosure for amount and expiration of Tax Losses. The Tax Losses - By Year of Expiration Report can be used to see entity and consolidated level tax losses by year of expiration. This information can be used to construct the footnote disclosure regarding loss expirations and amounts if required.