Working with National Deferred Tax

The Deferred Tax form is used to view the deferred tax calculation.

Tax Reporting calculates Deferred Tax on assets and liabilities. The calculation requires the book and tax basis of assets and liabilities as inputs. In Tax Reporting, the difference between the book and tax basis is calculated, and the tax rate applied to determine the amount of deferred tax asset and liability.

Table 11-3 Example of Deferred Tax

Example: Property, Plant, Equipment
Book Basis	1,000,000
Tax Basis	900,000
Difference	(100,000)
Tax Rate	20%
Deferred Tax Liability	(20,000)

Note:

Due to accelerated depreciation for tax purposes, the tax basis is less than the book basis, giving rise to a deferred tax liability.

If you want to classify deferred tax settings, see Classifying Deferred Tax Assets and Liabilities.

To access the Deferred Tax National form:

1. From the Home page, click Tax Provision National.
2. Click Package, and then select Deferred Tax.
3. Expand column and row headings to see all categories.

Note:

The following acronyms are used within some categories:

• DTNR - Deferred Tax Not Recognized
• NBR - Net Benefit of Region. For the United States jurisdiction, this acronym identifies state taxes that can be deducted from Federal tax.

To see descriptions for the Row Headings, see National Deferred Tax Row Headings

The form contains the following headings across the columns:

Table 11-4 National Deferred Tax Column Headings

Category	Subcategory	Description and Subcategories
Opening Balance As Adjusted		The tax effect of the prior year end temporary differences, including the tax effect of the opening balances for federal benefit of state taxes, deferred tax not recognized, and prior year adjustments.
	Net Prior Year Adjustment	The sum of prior year adjustments and Prior Year Adjustment - NBR.
	Prior Year Adjustment - Losses and Credits	The Total of the adjustments is copied from the Current Provision form to the corresponding Tax loss/credit account on the Temporary Differences form. This field is read-only.
	Prior Year Adjustment - NBR	The Net Benefit of Regional deferred tax on prior year adjustments when the regional income taxes (for example, U.S. state income taxes) are deductible for federal tax purposes.
	Opening Balance Adjustment	The sum of Total Opening Balance, and the Net Prior Year Adjustment.
	Net Opening Balance	The sum of Total Opening Balance and Opening Balance - NBR
	Opening Balance - NBR	The Net Benefit of Regional (NBR) deferred tax on the opening balance when the regional income taxes (for example, U.S. state income taxes) are deductible for federal tax purposes.
	Opening Balance	The tax effect of the prior year end temporary differences.
Current Year Total		The sum of Automated and Adjustments
	Automated Total
	Adjustment Total
Return to Accrual (Deferred Only)		The tax effect of the adjustments to temporary differences based on the Return to Accrual form.
Audit Settlements (Deferred Only)		The tax effect of the adjustment to temporary differences resulting from audit settlements.
Other Adjustments Total (Deferred Only)		The tax effect of the adjustment to temporary differences resulting from any other type of adjustment.
	Other Adjustments (Deferred Only)	The tax effect of the adjustment to temporary differences resulting from any other type of adjustment.
	Other Adjustments Automated (Deferred Only)	The tax effect of the adjustments to temporary differences resulting from any other type of adjustment automated in Tax Provision.
Transfers (Deferred Only)		The tax effect of the adjustment to temporary differences resulting from transfers of Assets/Liabilities and the related temporary difference..
Prior Year Adjustment (Deferred Only)		The tax effect of the adjustment to temporary differences resulting from prior year adjustments.
Contingency (Deferred Only)		The tax effect of the adjustments to temporary differences resulting from tax contingencies related to temporary differences.
Impact from change in Tax Rates		The impact of change in tax rates on the opening balance and current year movement. If you enable Scenario - Entity Tax Rate Change to Equity feature, the system creates custom attribute for all the scenario members on the application. If you apply that custom attribute to any entity, impact from change in tax rates data will be moved to the Impact from Change in Tax Rates in Equity column for all the temporary difference accounts. See also: Enabling Application Features and Defining Entity Tax Attributes in Administering Tax Reporting
	Impact from Change in Tax Rates - Current Year Total	The tax effect of tax rate changes as it relates to current year activity.
	Impact from Change in Tax Rates - Acquisitions Total
	Impact from change in Tax Rates - NBR	CALCULATION: NBR Rate Change Current Balance(TRCS_NBRRCCY): If closing balance = 0 Then 0 If closing balance <> 0 Then Deferred Tax All Regional, All current year movements(TRCS_Mvmts_Subtotal) * (end of year rate (TRCS_TaxRateNoncurrentClosing) - current year tax rate (TRCS_TaxRateCY) * -1)
	Impact from change in Tax Rates - RCCY	CALCULATION: Rate Change Current Balance(TRCS_RCCY): If closing balance = 0 Then 0 If closing balance <> 0 Then Temporary Differences, All current year movements(TRCS_Mvmts_Subtotal) * (end of year rate (TRCS_TaxRateNoncurrentClosing) - current year tax rate (TRCS_TaxRateCY) )
	Impact from Change in Tax Rates - Opening Balance Total	The tax effect of tax rate changes as it relates to the Opening Balance Total..
	Impact from change in Tax Rates - Opening Balance NBR	CALCULATION: NBR Rate Change Opening Balance(TRCS_NBRRCOpening): If closing balance = 0 Then Deferred Tax - All Regional, Opening balance as adjusted (FCCS_TotalOpeningBalance) *(current year tax rate (TRCS_TaxRateCY) – opening tax rate(TRCS_TaxRatePY) ) * -1 If closing balance <> 0 Then Deferred Tax All Regional, Opening balance as adjusted (FCCS_TotalOpeningBalance) *(end of year tax rate (TRCS_TaxRateNoncurrentClosing) – opening tax rate(TRCS_TaxRatePY) ) * -1
	Impact from change in Tax Rates - Opening Balance	CALCULATION: Rate Change Opening Balance(TRCS_RCOpening): If closing balance = 0 Then Temporary Differences, Opening balance as adjusted(FCCS_TotalOpeningBalance) *(current year tax rate (TRCS_TaxRateCY) – opening tax rate(TRCS_TaxRatePY) ) If closing balance <> 0 Then Temporary Differences, Opening balance as adjusted(FCCS_TotalOpeningBalance) *(end of year tax rate (TRCS_TaxRateNoncurrentClosing) – opening tax rate(TRCS_TaxRatePY))
Net Benefit of Region		The tax effect of the Net Benefit of the Regional deferred tax expense as it relates to current-year activity.
Total Deferred Tax Expense		The sum of all deferred tax expenses.
Acquisitions		The tax effect of the adjustment to temporary differences resulting from the acquisition of assets and liabilities and the related temporary difference.
Adjustments for Change in Tax Rates - Acquisition
Disposals		The tax effect of the adjustment to temporary differences resulting from the disposals of assets/liabilities and the related temporary difference.
Total Equity	Equity Adjustments Total	The tax effect of the adjustment to temporary differences resulting from equity transactions.
	Equity Automated Total	The tax effect of the adjustment to temporary differences result from equity transactions.
Equity Prior Year		The tax effect of the adjustment to temporary differences resulting from equity transactions and return filing.
Equity Other		The adjustment to temporary differences resulting from all other equity transactions. This amount is input manually and does not affect the deferred tax expense.
Impact from change in Tax Rates in Equity	Impact from change in Tax Rates in Equity - Current Year Total	CALCULATION: Rate Change Current Balance(TRCS_RCCY): If closing balance = 0 Then 0 If closing balance <> 0 Then Temporary Differences, All current year movements(TRCS_Mvmts_Subtotal) * (end of year rate (TRCS_TaxRateNoncurrentClosing) - current year tax rate (TRCS_TaxRateCY) )
	Impact from change in Tax Rates in Equity - Opening Balance Total	CALCULATION: Rate Change Opening Balance(TRCS_RCOpening): If closing balance = 0 Then Temporary Differences, Opening balance as adjusted(FCCS_TotalOpeningBalance) *(current year tax rate (TRCS_TaxRateCY) – opening tax rate(TRCS_TaxRatePY) ) If closing balance <> 0 Then Temporary Differences, Opening balance as adjusted(FCCS_TotalOpeningBalance) *(end of year tax rate (TRCS_TaxRateNoncurrentClosing) – opening tax rate(TRCS_TaxRatePY))
Total Equity Adjustments		The sum of automated and equity adjustments.
Non Provision - NBR		The tax effect of balance sheet adjustments that are derived from the federal benefit of state tax adjustments.
Balance Sheet Total
Foreign Exchange	Foreign Exchange - Opening Balance	The total currency translation on the opening balances. CALCULATION: Entity Currency data * ( Ending FX rate - Opening FX rate )
	Foreign Exchange - Current Year	The total currency translation on the current year movements. CALCULATION: Entity Currency data * ( Ending FX rate - Average FX rate )
Ownership	Ownership `	This amount is the total of Ownership Opening Balance and Ownership for the Current Year.
	Ownership - Opening Balance	This amount is the difference in the Opening Balance due to ownerhip changes to the Parent..
	Ownership - Current Year	This value represents the Ownership Percentage for the Current Tax.
Closing Balance -Tax		The sum of the tax effect of the opening balance plus current movements.
Closing Balance - Non Current Assets		The classification of the tax effect of the total net deferred tax assets and deferred tax liabilities. If the total tax effect is positive or an asset, then all deferred tax assets and liabilities will be classified as an asset.
Closing Balance - Non Current Liabilities		The classification of the tax effect of the total net deferred tax assets and deferred tax liabilities. If the total tax effect is negative or a Liability then all deferred tax assets and liabilities will be classified as a liability.