Working with Acquisitions: Regional

Tax Reporting already has acquisitions available on a pre-tax basis with temporary differences for both national and regional level (see, Working with Temporary Differences and Entering Regional Temporary Differences) and now the users can input acquisitions on a tax effected basis as well. Acquisitions without tax input will be tax effected using current year rate, that is, if you only entered Acquisitions pretax data in temporary differences accounts, then the application applies the current year tax rate.

To manage the deferred tax impact of acquisitions, the users can use Acquisitions and Acquisitions Regional forms to enter pre-tax, tax effected and profit and loss (P&L) adjustments to rate change amounts for acquired deferred tax assets/liabilities. This new capability allows you to record acquired deferred tax assets/liability at the acquired tax rate and record tax rate change as a balance sheet adjustment when appropriate.

The previous process of entering acquisition amounts in the temporary difference acquisition movement will continue to be tax effected in deferred tax at the default or override tax rate whichever is applicable.