Provision Solutions

FAS109 Detailed Compliance

* An understandable tool for use with US & foreign controllers
* A clear roadmap for auditors – facilitating fast sign-off and/or selection of items for examination
* Concise, automatically generated, "Annual Report" scale adjusting entries

Compliance

Be in Control – Country by Country


country

"Roll-forward" screens automatically draw prior period tax account details into the current period template.
Roll-forward minimizes periodic inputs, reminds user of accounts needing consideration, shows balances at beginning of period.

Primary Input Screens


input

Taxes Payable (Refundable) Account Summary

Provides display of taxes payable or receivable at the start of the period. Input fields call for entry of tax payments, adjustments and refunds. After completion of the template, this section displays a calculated current tax payable/receivable.

payable

Current Quarter Activity

A single entry of book income for the period produces an automatic calculation of pre-adjustment tax. NOLs automatically update and adjust the taxable income.

current

State and Local Income Taxes

As an alternative to a single rate adjustment entry, detailed jurisdiction by jurisdiction income tax information can flow into the provision calculation, permitting a "Federal rate only" entry in Section One.

taxes

Net Operating Loss

This section maintains and applies net operating loss data. Losses are automatically applied to current period income and are drawn from the earliest recorded loss. Special functionality permits the restriction on use of losses by number of years or by percentage allowed under local law. NOL derived deferred tax assets are calculated in this module.

 

 

Expense for Current Quarter

 Cumulative Income effect decrease (increase) for tax

Deferred Tax Asset

Deferred Tax Liability

DEFERRED TAX ASSETS/(LIABILITIES)

Tax Total

Book Total

Previous Bal.

Quarter end

Rate

Quarter end

Qtr End

Differences between tax and book depreciation?

No

-

-

500,000

500,000

33%

0

165000

Differences in bad debt deductions for tax versus book?

No

-

-

-

0

33%

0

0

Differences between tax and book amortization?

No

-

-

-

0

33%

0

0

Differences between tax and book compensation deductions?

No

-

0

33%

0

0

List below other differences between tax and book net income?

Expenses in Tax FY 2003

No

-

-

0

33%

0

0

Deferred Income Recognition - Goodwill

No

-

-

-

0

33%

0

0

- Describe Other

No

-

0

33%

0

0

- Describe Other

No

-

-

-

0

33%

0

0

From EXPANSION WorkSheet

No

400

300

-

100

33%

99

132

Total Deferred Assets

500,000

500,100

-99

165,132


Deferred Tax Assets and Liabilities

This critical data source accepts and maintains the temporary timing differences between the calculation of companyi income under GAAP and the parallel income calculation for local country income tax puirposes. The program calculates the amount of deferred tax assets and separately calculates and maintains deferred tax liabilities. The number of separate entries that can be used in the system is virtually unlimited due to an expandable supplement.

deferred

Rate Reconciliation

This section of the Provision Solution program permits the input of a variety of permanent differences between the calculation of book income and taxable income. Such differences include variable rate categories, tax credits, non-deductible expenses and tax-free income. Like the "temporary differences" module, this section of the tool is expandable in the supplement.

reconcile

Output - Journal Entries

As its title announces, this module displays the results of the inputs in one, concise, easy to read format. The output acts both as a Journal Entry for the current period activity, and as a check on the balances of tax assets and liabilities and year-to-date provision for income taxes. The display has room for flexibility in segregation of long term and current balances as management believes will better reflect the anticipated realization time horizon. Valuation reserves are added outside of the program.