Valuation Allowance by Account

New forms and supporting metadata to add detailed tracking of the Valuation Allowance for Tax Loss/Credit Carryforward and Cumulative Temporary Differences are now available. The detailed Valuation Allowance is tracked at both national and regional levels.

The following new forms are added:

  • National: Tax Losses VA, Tax Credits VA, Valuation Allowance, Temporary Differences Post VA, Deferred Tax Post VA, Deferred Tax Post DTNR and VA
  • Regional: Tax Losses VA Regional, Tax Credits VA Regional, Valuation Allowance Regional, Temporary Differences Regional Post VA, Deferred Tax Regional Post VA

 To view the new forms:

  • Navigate to Library > Deferred Tax Provision > Temporary Differences to view the Temporary Differences VA forms.
  • Navigate to Library > Deferred Tax Provision > Deferred Provision to view the other VA related forms.

Business Benefit: This feature improves transparency and control over Valuation Allowances, enabling detailed reporting and disclosure by allowing the setting of valuation allowance at the deferred asset Account level (for example, Temporary Differences, NOLs and Credits).

Steps to enable and configure

  • The application must have the Hybrid Dense Sparse Optimization model enabled.
  • For new applications, enable the feature by navigating to Create Application: Features, selecting Valuation Allowance By Account and clicking Enable.
  • For existing applications, enable the feature by navigating to Application: Configuration, selecting Valuation Allowance By Account, and clicking Enable Features.

Key resources