1. Working with Tax Reporting
  2. Working with Regional Tax Process
  3. Working with Acquisitions: Regional
  4. Using Regional Acquisitions Form

Using Regional Acquisitions Form

The schedule is similar to both national (see, Using National Acquisitions Form) and regional accounts. But in regional acquisition form, the regional account is shown along with the national, and national accounts are adjusted on a tax effected basis as each state can be tax effected at a different rate.

You can use this form to enter pre-tax, tax effected and profit and loss (P&L) adjustments to rate change amounts for acquired deferred tax assets/liabilities. Acquisitions in the current year can be input in the Temporary Difference and Deferred Tax columns of the Acquisition form. Any rate changes that result from acquisition amounts are calculated by the system.

The tax rate change adjustments in the system are recorded as profit and loss (P&L) expense. To adjust the P&L for tax rate changes that should not affect the P&L, enter the changes in the Acquisition forms.

Example Scenario

  1. Click Acquisitions card on the Home Page to open the National Acquisitions Form. You see 3 new Acquisition columns have been added - Mapped Data from National, Tax Input and Impact from Change in Tax Rates - Acquisitions Total. The value that you have entered in the pre-tax column in the national acquisition form flows into the Mapped Data from National column of the regional form.

    Regional_Acquisition_Form

  2. Define the POV. Click Apply.
  3. Under the Temp 1 scenario, enter acquisition values in tax input, and rate change columns. You can similarly enter values for Temp 2 and Temp 3 scenarios, or you can choose to keep it empty.

    Enter_Values

  4. Click Save. On the form, under Actions, select Consolidate, and then click Launch.
  5. Click Package Regional > Temporary Differences Regional. Expand the rows and columns necessary. You can see that Acquisitions column will have data.

    Temporary_Differences_Regional

  6. Click on Deferred Tax tab, expand Impact From Change in Tax Rates Regional column to see the tax affected data and rate change.

    Deferred_Tax_Regional

  7. Click on TAR Regional under Tax Provision Regional in the Navigator window. Note that:
    • Impact of rate change in acquisitions should show up as a deferred expense and it will get reversed as deferred tax assets or deferred tax liabilities.
    • Acquisitions and adjustment for rate change in acquisitions should start as a deferred tax assets or deferred tax liabilities and should get reversed under Acquisitions Total column.
    Impact_from_Change_in_Tax_Rates_Total_Acquisitions

    Adjustments_for_change_in_Tax_Rates_Acquisition

  8. Click Regional ETR under ETR Regional tab. The Statutory ETR Regional form opens.
    • Expand Deferred Tax Expense Total Regional row.
    • Expand Rate Change Total row to see the Rate Change - Acquisitions data.
    Regional_ETR_Rate_Change_Acquisitions

See: