1. Working with Tax Reporting
  2. Working with Regional Tax Process
  3. Working with Regional Current Provision
  4. Working with the Regional Current Provision Form
  5. Permanent and Temporary Differences

Permanent and Temporary Differences

Permanent and temporary differences are categorized into two categories to account for the differences between GAAP and Statutory reporting requirements of entities:

  • GAAP to Statutory adjustments—Legal entities for which the local tax regulations require a different basis of accounting from those of the parent use GAAP to Stat adjustments.
  • Statutory to Tax adjustments—Entities that do not use or do not have GAAP to Statutory permanent or temporary differences, and for which reporting standards and local tax regulations are the same use the Statutory to Tax permanent and temporary differences sections.

The permanent and temporary difference amounts can be manually input or automated. The manual inputs also include adjustments to the automatically calculated values that may be needed.