1 Tax Reporting Overview

Tax Reporting is a comprehensive global tax provision solution for multinational companies reporting under GAAP (Generally Accepted Accounting Principles) or IFRS (International Finance Reporting Standards). The solution encompasses all stages of the corporate tax provision process, including tax automation, data collection, tax provision calculation, return-to-accrual automation, tax reporting and analysis, and Country by Country (CbCR) reporting.

Note:

This guide is designed for administrators implementing and maintaining the Tax Reporting application.

Tax Reporting provides a starting point for a new implementation of a Tax Reporting application.

Tax Reporting calculates your company’s global tax provision, effective tax rate, and deferred tax for tax provisioning purposes. The application complies with the standards for accounting for income taxes under US GAAP and IFRS.

Tax Reporting can 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 Reporting automatically calculates the current and deferred income tax provisions by legal entity and by jurisdiction.

From the provision calculation, Tax Reporting 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)