Entering Regional Temporary Differences

You use the Temporary Differences form to enter the temporary differences that are not automated in the system. Amounts include temporary differences, tax losses, tax credits, national or regional credits, and the related valuation allowances. You can also enter activity such as current-year and prior-year adjustments and nonprovision and equity items.

Each temporary difference may be set up as Noncurrent for Balance Sheet classification purposes. To view these classifications, open the Temporary Differences Properties report. Temporary differences, Tax Losses, and Valuation Allowance adjustments (for example, noncurrent and tax losses) are entered on a pretax basis. Tax credits and valuation allowance–tax credits are entered on a tax-effected basis.

The following valuation allowance accounts are provided:

• Noncurrent temporary differences
• Tax Losses
• Tax Credits

All valuation allowances should be negative values, except for current year or other adjustment amounts that are meant to reduce the valuation allowance.

The Temporary Differences Regional form contains the following categories in the columns:

Table 12-2 Temporary Differences Regional Column

Category	Description
Opening Balance	The prior year end temporary differences. It is populated automatically.
Opening Balance Adjustment	This column is used when the opening balance of a deferred tax asset/(liability) must be restated with no impact on the provision. This adjustment affects only the beginning balance of the deferred tax asset or (liability) and does not affect the deferred provision. The amounts are entered manually.
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.
Opening Balance as Adjusted	The beginning-of-year balance after adjustments is calculated.
Automated	The current year book-tax difference automated in the current provision. This amount automatically flows to the temporary difference rollforward. Amounts for this column are automated only and affect the deferred tax expense.
Automated Reversal	The reversal of the current-year book-tax difference automated in the current provision. This amount is automated based on the setting of equity temporary differences at the account level. Amounts for this column affect the deferred tax expense.
Automated Total	This is the sum of the Automated and Automated Reversals.
Adjustment	The current-year book-tax difference input in the current provision. This amount automatically flows to the temporary difference rollforward. Amounts for this column are manually input and impact the deferred tax expense.
Adjustment Reversal	The reversal of the current year book-tax difference manually input in the current provision. This amount is automated based on the setting of equity temporary differences at the account level. Amounts for this column affect deferred tax expense.
Adjustment Total	This is the sum of Adjustment and Adjustment Reversal.
CY Total	This is the sum Automated Total and Adjustment Total.
Return to Accrual (Deferred Only)	The adjustments to temporary differences based on the Return to Accrual form. This amount is automated from the Return to Accrual form and affects deferred tax expense.
Audit Settlements (Deferred Only)	The adjustment to temporary differences resulting from audit settlements. This amount is manually entered to the temporary difference rollforward and affects deferred tax expense.
Other Adjustments - Automated (Deferred Only)	The automated adjustment to temporary differences from any other type of adjustment. This amount can be automated from supplemental schedules in Tax Provision.
Other Adjustments (Deferred Only)	The adjustment to temporary differences resulting from any other type of adjustment. This amount is manually entered to the temporary difference rollforward and affects deferred tax expense.
Other Adjustments Total (Deferred Only)	This is the sum of Other Adjustments - Automated and Other Adjustments.
Transfers (Deferred Only)	The adjustment to temporary differences resulting from transfers of assets/liabilities and the related temporary differences. This amount is manually entered to the temporary difference rollforward and affects deferred tax expense.
Prior Year Adjustment (Deferred Only)	The adjustment to temporary differences resulting from prior year adjustments. This amount is manually entered to the temporary difference rollforward and affects deferred tax expense.
Contingency (Deferred Only)	The adjustment to temporary differences resulting from tax contingencies related to temporary differences. This amount is manually entered to the temporary difference rollforward and affects deferred tax expense.
P & L Total	This is the sum of the following categories: Adjustments Return to Accrual Audit Settlements Other Adjustments Transfers Prior Year Adjustments Contingency
Acquisitions	For the adjustment to temporary differences resulting from the acquisition of assets and liabilities and the related temporary differences. This amount is automatically transferred from the Acquisitions form. Amounts do not affect deferred tax expense.
Disposals	For the adjustment to temporary differences resulting from the disposals of assets/liabilities and the related temporary differences. This amount is manually entered to the temporary difference rollforward and does not impact deferred tax expense.
Equity Automated	For the adjustment to temporary differences resulting from equity transactions. This amount is automated based on equity temporary difference settings at the account level and does not affect the deferred tax expense.
Equity Adjustment	The adjustment to temporary differences resulting from equity transactions. This amount is manually entered to the temporary difference rollforward and does not affect the deferred tax expense.
Total Equity	This is the sum of Equity Automated and Equity Adjustment.
Equity Prior Year	For the adjustment to temporary differences resulting from equity transactions and return filing. This amount is automated based on equity temporary difference settings at the account level and does not affect the deferred tax expense.
Equity Other	For the adjustment to temporary differences resulting from all other equity transactions. This amount is manually input and does not affect the deferred tax expense.
Equity Total	This is the sum of Total Equity, Equity Prior Year, and Equity Other.
Balance Sheet Total	The Closing Balance
Foreign Exchange Opening Balance	The tax effect of currency translation of the beginning balances.
Foreign Exchange - Current Year	The tax effect of the currency translation of the current year movements.
Foreign Exchange	The sum of the tax effect of the currency translation for the opening balance and current year movements
Ownership	The amount is the total of Ownership Opening Balance and ownership for the Current Year.
Ownership - Opening Balance	The amount is the difference in the Ownership Opening Balance due to ownership change to the Parent.
Ownership - Current Year	This is the difference in the Opening Balance due to Ownership change to the Parent.
Temporary Differences Closing Balance

The Temporary Differences Regional form contains the following categories in the columns:

Table 12-3 Temporary Differences Regional Rows

Category	Description
Total Temporary Differences (GAAP to Stat)	The parent of base accounts that are user-defined upon implementation.
Total Temporary Differences (Stat to Tax)	The parent of base accounts that are user-defined upon implementation.
Total Temporary Differences	The total of Total Temporary Differences (GAAP to Stat) and Total Temporary Differences (Stat to Tax).
Total National Tax Losses - Carryforward Automated	Regional tax losses are captured under Carryforward Automated for these categories: Tax Losses - used to record the utilization of any Net Operating Loss carryforward against the current year taxable income Capital Losses Charitable Contributions National Tax Losses - used to bring taxable income up to 0 for an entity with a loss in the current year, which should be carried forward
Total National Tax Losses	The current year book-tax difference automated in the current provision. This amount automatically flows to the temporary difference rollforward. Amounts for this column are automated only and affect the deferred tax expense.
Total Tax Credits Carryforward	The reversal of the current-year book-tax difference automated in the current provision. This amount is automated based on the setting of equity temporary differences at the account level. Amounts for this column affect the deferred tax expense.
Total Tax Attributes	This is the sum of the Automated and Automated Reversals.
Total National Temporary Differences, Losses, Credits and Attributes
Total Valuation Allowance	The parent of a base account that is user-defined upon implementation.
Temporary Differences National
Total Regional Temporary Differences
Total Temporary Differences - Regional
Total Regional Tax Losses - Carryforward - Pre-Apportionment
Total Regional Tax Losses - Carryforward Automated	The parent of a base account that is user-defined upon implementation.
Total Regional Tax Losses
Total Regional Tax Credits - Carryforward	The parent of system-provided base accounts that are used for Tax Credits that are deferred.
Total Regional Tax Attributes	The parent of a base account that is user-defined upon implementation.
Total Regional Temporary Differences, Losses, Credits and Attributes
Total Regional Valuation Allowance	The parent of a base account that is user-defined upon implementation.
Temporary Differences Regional