The Effective Tax Rate report for Provision datasets creates an overview of the reconciliation going from each component at the group rate designated for the dataset and the effective tax rate calculated in the provision calculation. Supporting detail for some calculations can be viewed in this report, while underlying support for other items is on separate reports. Selecting an amount with a hyperlink opens a supporting report. Parameters can change the view of this report.

 

To add the parameters go to the Administration > System > Manage Configurations > Reporting.

 

Note: Differing rounding policies can cause amounts on this report, as well as the Tax Provision and Foreign/Domestic reports, to be out of balance by a minimal amount.

 

Provision Items

•Total Tax Provision

•Effective Tax Rate

 

Report Views

•Defaults to summary and contracted views.

•Rollups are user-defined groupings that allow detail level component data to be consolidated and rolled up to a higher level. Creating and managing rollups for the report occurs in the Administration area. For example, a Rollup may assist in generating the footnote, while another may explain the results for management reporting.

•Detail: Displays underlying detail by the selected rollup code or the default rollup by component type.

•Expanded: Displays additional columns for the pre-tax amount, the effect of rates different from statutory, rate changes from period to period, and any deferred-only adjustments that may impact the overall taxable rate for each item.

•Breakout all: On Sub-Consolidated and Consolidated reports, displays underlying unit data that made up the total result. A single column can be expanded by selecting Brkout. To collapse data, select Non breakout. Expanded results display on the screen or export to an Excel file, depending on the version and parameter settings.

•Use Unit Tax Rate: On Unit and Filing Group level reports, displays the effective tax rate report, reconciling to the Group Rate selected for the dataset or the Unit's current tax rate. This view option only displays in versions 6.0 and higher when the EFFRATEBRKOUT system parameter is set to 1.

•Use Blended Rate: On Sub-Consolidated and Consolidated reports, displays the effective tax rate report, reconciling to the Group Rate selected for the dataset or the Unit's current tax rate. The reconciliation starts either with PTBI at the Group Tax rate or at the Blended rate of the underlying units in the sub-consolidation/consolidation. This view option only displays when the EFFRATEBRKOUT system parameter is set to 1.

•The Breakout All view shows the underlying units in the sub-consolidation/consolidation.

•State Breakdown: Displays the effective tax rate report, reconciling to the Group Rate. It displays specific state differences, as well as federal.

 

Line by Line

•Pre-Tax Book Income: Data Entry > PTBI.

•FX Adjustment: The Pre-Tax Book Income (local) divided by Weighted average FX rate subtracted from Pre-Tax Book Income (reporting).

•State and Local Income Taxes: Provision from State Summary - Provision Summary plus the Federal Benefit of State impact.

•Effect of Rates Different from Statutory: Accommodates differences in the current tax rates and the dataset's group tax rate, as defined in Administration > Manage Datasets > Datasets. The difference of the unit current tax rate and the group rate is multiplied by Pre-Tax Book Income and Permanent Differences to arrive at an adjustment to account for unit rates different from statutory.

•Permanent Differences: Data Entry > Permanent Differences, and InterCompany Transaction Entry.

•Temporary Differences: Data Entry > Temporary Differences - Tax Basis and Temporary Differences - Book/Tax Basis. Only amounts entered as Deferred Only or when there was a change in the deferred tax rate.

•NOLs: Data Entry > NOL Temporary Differences - Tax Basis. Only amounts entered as Deferred Only or when there was a change in the deferred tax rate.

•Cash Tax Adjustments: Data Entry > Tax Adjustments.

•After Tax Temporary Differences: Data Entry > After Tax Temporary Differences - Tax Basis, and After Tax Temporary Differences - Book/Tax Basis. Only amounts entered as Deferred Only.

•Deferred Provision Only Adjustments: My Datasets > Units > More > Rates.

 

Column By Column

•Effect of Rates Different from Statutory: Accommodates for differences in current tax rates in the unit’s Unit Details screen and the group tax rate defined by the dataset in Administration > Manage Datasets > Datasets. If a unit’s current tax rate is different from the group rate, the difference of the unit’s current tax rate and the group rate is multiplied by the unit’s Pre-Tax Book Income and Permanent Differences to accommodate for rates different from statutory.

•Effect Deferred Rate Changes: Provides for the impact of restating beginning deferred balances, if the beginning and ending deferred tax rates found in the unit’s Unit Details screen differ.

•Effect Rate Differences between Current and Deferred: Provides for activity in deferred balances that is rate effected at a current tax rate that differs from the ending deferred tax rate found in the unit’s Unit Details screen.

•Deferred Provision Only Adjustments: Displays overrides to the deferred tax provision made in the Unit Details – deferred only adjustment or any Deferred Only Adjustments entered in the Temporary Differences - Tax Basis, NOL Temporary Differences - Tax Basis, or After Tax Temporary Differences - Tax Basis screens.