Entering CbCR FX Override Rates

For each account on CbCR Table 1 (with the exception of the Number of Employees), all Revenue/Expense columns use the Average Rate to perform currency translations and Asset/Liability columns use the Ending Rate. The Number of Employees is not translated. In order to use a rate other than the default Average or Ending Rate, use the CbCR FX Rates Override form to enter different rates.

The override rate for each CbCR column also enables you to adjust the rate for either VAL or PVA translation methods. By default, Tax Reporting uses the VAL method.

Under Dimensions, the CbCR Table 1 Accounts are created as Shared under TRCS_CBCR Override FX Rate Accounts. These accounts mirror those specified under TRCS_Table1.

Using the CbCR cube, the following hierarchy is automatically created to specify the average rates for translations:

Table 17-1 TRCS_CBCR Override FX Rate Accounts

Account	Default Alias
TRCS_CBCRRevenuesRelatedParties(Shared)	Revenue Related Parties
TRCS_CBCRRevenuesUnrelatedParties(Shared)	Revenue Unrelated Parties
TRCS_CBCREBIT(Shared)	Profit (Loss) Before Income Tax Earnings Before Interest and Tax (EBIT) is a measure of a company's profit that includes all expenses except interest and income tax expenses. The value represents the difference between operating revenues and operating expenses. EIBT FX Override rates can only be entered in the CbCR cube.
TRCS_CBCRNationalIncomeTaxPaid(Shared)	National Income Tax Paid (on cash basis)
TRCS_CBCRRegionalIncomeTaxPaid(Shared)	Regional Income Tax Paid (on cash basis)
TRCS_CBCRNationalIncomeTaxAccrued(Shared)	National Income Tax Accrued (Current Year)
TRCS_CBCRRegionalIncomeTaxAccrued(Shared)	Regional Income Tax Accrued (Current Year)
TRCS_CBCRStatedCapital(Shared)	Stated Capital
TRCS_CBCRAccumulatedEarnings(Shared)	Accumulated Earnings
TRCS_CBCRNetTangibleAsssets(Shared)	Tangible Assets, Net

Translation rates can be applied at the following levels:

• Account

• Entity

• Global Assumption

If a translation rate is not available, no translation will occur.

Note:

For the Profit (Loss) Before Income Tax column (TRCS_CBCREBIT), if no Account level rate is applied, the NIBT override rate will be applied.

To enter the CbCR FX Override Rate:

1. From the Home page, select Library, then under Forms, expand Tax Administration, and then select TRCS_CbCR FX Rates Override.

   The screen displays all columns from the CbCR Table 1 Accounts, except the Number of Employees.

2. Click Edit , and select the POV and Entity Currency that you want to use.
   
   
3. Under Entity Input, enter the CbCR FX override rate for the selected account, and then click Save. Repeat for each required account. You can click Save after all the rates are entered.

   Note:

   If no override rate is specified for the Asset/Liability account, the Ending Rate is used. If no override rate is specified for the Revenue/Expense account, the Average rate is used.
4. From the Home page, select CbCR, then Data Entry, and then Table 1 to open the Table 1 Data Entry form.
5. Under Edit, select the reporting currency.
6. From Actions, select Translate CbCR.

   The values are translated using the CbCR FX override rates as outlined below:

   • For CbCR:

     • Account level override rates will be applied.

     • If not available, use the default rates, based on the Exchange rate as set in the account property, Revenue/Expense accounts against Average rate, Asset/Liabilities against Ending rate at Entity level

     • If not available, use the default rates, based on the Exchange rate as set in the account property, Revenue/Expense accounts against Average rate, Asset/Liabilities against Ending rate at Global Assumptions

     • If not available, there is no translation.

   • For EBIT column (TRCS_CBCREBIT - Profit (Loss) Before Income Tax):

     • Account level override rates will be applied.

     • If not available, use NIBT override rate

     • If not available, use the default rates, based on the Exchange rate as set in the account property, Revenue/Expense accounts against Average rate, Asset/Liabilities against Ending rate at Entity level,

     • If not available, use the default rates, based on the Exchange rate as set in the account property, Revenue/Expense accounts against Average rate, Asset/Liabilities against Ending rate at Global Assumptions

     • If not available, this is no translation.

7. Review the results on the CbCR Table 1 Data Entry form.