Use the Aggregated Post-Tax Valuation Allowance functionality to combine the three component types and determine if a net asset will have an offsetting valuation allowance.

 

•Activate the Aggregated Valuation Allowance functionality by importing the VA_CALCTYPE dataset parameter with a paramvalue of 4.

•In the Automation page, you can enter percentages for the net amount of After Tax Temporary Differences, NOL Temporary Differences, and Temporary Differences in the Unified VA Rate.

•The functionality analyzes the net of the three component types. For example, if balances in Net Operating Losses for the unit netted to an asset and the Temporary Differences for the same unit netted to a liability, when the NOL and the Temporary Differences are netted to an asset, the system posts a valuation allowance contra asset at the entered percentage for Aggregated Base Valuation Allowance.

•The Current/Non-Current balances that made up the component's asset determine the designation of current or non-current status for the valuation allowance.

•For units in a filing group, the parent unit determines the valuation allowance automation and percentage for the group.

•This method identifies where a unit or filing group has a Net Deferred Tax Asset and posts on After-Tax Basis to the codes VA_SYS_ATTD_C and VA_SYS_ATTD_NC.