Page Comparison

Temporary differences P/L \[calculation of deferred taxes,  affecting P/L statement\]

Temporary differences OCI \[calculation of deferred taxes,  not affecting P/L statement\]

Permanent differences P/L \[no calculation of deferred taxes, affecting TRR\]

Permanent differences OCI \[no calculation of deferred taxes\]

Thereof columns present in the master data tab have black frames around them \[see the figure below\]. This allows the user to identify target columns before using the function. A manual adjustment is possible at any time. 
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_Fig. 71: Thereof columns in B/S Comparison_
*Reports \[* !worddav41cdf403c5414ebdc4cb230c7e1047ea.png|height=18,width=60! *\]*
The Reports button contains a link to the main dialogue _Reports_ – !worddav4f6ad2e865cbb5448d5db2750a1d4f5b.png|height=23,width=161! . 
*To true-up period \[* !worddav8a0f8d572b54a837ad6d28ae3601042a.png|height=23,width=127! *\]*
If there exists a prior period with a true-up period for the selected period, you can call up the _B/S Comparison_ dialogue for the true-up period. To go back to the current period click the \[ !worddav625d69d1c501201e5871849c942b4870.png|height=23,width=131! \] button.
*Expand/collapse account positions \[* !worddav585c758fde4e8ed091012c17fb729a8c.png|height=25,width=9! *\]*
Account positions can be expanded or collapsed to optimise the view. You can expand/collapse account positions selectively \[per position\] or altogether \[for the whole balance sheet\].
*Delete all column values \[* !worddavbada1123f50a6894a3df4e547999cbce.png|height=18,width=15! *\]*
All values of a column can be deleted by clicking on the recycle bin icon. After doing this save the dialogue. Only after saving the changes will be applied.
*+ and – signs in account positions*
B/S Comparison follows the SAP logic. Therefore, enter a '+' sign before assets and a '-' before liabilities. 
{*}{_}Structure of the 'B/S Comparison' dialogue_*

In addition to the _LCF_ dialogue, the _B/S Comparison_ dialogue is the central dialogue for calculating deferred taxes. It consists of several subdialogues. The balance sheet structure corresponds to the structure created in the master data for the selected period. The structure in subdialogues is the same. 
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_Fig. 72: Subdialogues in the 'B/S Comparison' dialogue_ 
Companies that are saved as partnerships in master data \[and are regulated by the German tax law\] in addition to four main tabs have the subdialogue _Supplementary tax balance sheet{_}:
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_Fig. 73: Subdialogues in the 'B/S Comparison' dialogue – partnerships_
Companies that are not regulated by the German tax law \[foreign companies\] can additionally switch on the _Additional Tax_ subdialogue. To do this activate the following checkbox in the master data dialogue _Company{_}:
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!worddav3fbf57492df385ac3f9e5f69ee2ce1da.png|height=33,width=606!
_Fig. 74: Subdialogues in the 'B/S Comparison' dialogue – foreign companies_
Applies to all dialogues: assets should be entered with a '+' sign before them, liabilities – with a '-' sign, in accordance with the SAP logic.  
{*}{_}Subdialogue 'Local GAAP – Tax Balance'_*

The local balance \[for German companies: commercial balance sheet\] is displayed in the _Local Balance_ column of the _Local GAAP – Tax Balance_ subdialogue. The _Correction to the local tax_ balance column \[in case it is a German company\] contains deviations acc. to sect. 60 para. 2 of EStDV \[Income Tax Ordinance\]. The _Local tax balance sheet_ column displays results from the columns _Local balance_ and _Correction to local tax balance{_}. Tax balance sheet values cannot be entered directly, they are always taken from these two columns. 
!worddavc2e8a01ec44fc8a796de981f0897b758.png|height=144,width=643!
_Fig. 75: 'B/S Comparison' dialogue – subdialogue 'Local GAAP – Tax Balance'_
The column _Import_ shows balance sheet values imported via the interface; these values cannot be edited. The column _Manually_ is available for the manual input of information, e.g. reclassification or adjustments to imported values. The column _Total_ displays the values relevant for calculation of balance sheet differences. 
If you want to use the _Manually_ column in the _Local GAAP – Tax Balance_ subdialogue, you need to activate the \[ !worddavd4bb8bf3464a135522565ba499e1eb4c.png|height=33,width=256! \] checkbox in the master data dialogue _Company_ first. This checkbox is usually activated by default and B/S Comparison can be edited manually.  
!worddav5b55a9a3564561e55de051def9ab92a9.png|height=87,width=629!
_Fig. 76: 'B/S Comparison' dialogue – columns for import and manual adjustments_
Balance sheet differences between local balance and local tax balance sheet calculated in the GTC are displayed in the column _Relevant Differences Gross{_}. These differences have to be allocated to the _Thereof_ columns and serve as a tax base for calculation of deferred taxes. Balance-sheet gross differences are multiplied by the country tax rate saved in the master data dialogue _Countries{_}:\[ !worddav7593ab568da3fe0ca6113d301b78e375.png|height=26,width=156! \].
The following figure displays two balance sheet differences. In the position _Rechte and Lizenzen_ there is a difference of -50,000 and in the _Land and buildings_ - +15,000. Both differences are temporary and affecting P/L statement \[thereof differences – P/L statement – 30%\]. A tax rate of 30% is saved in the master data:
!worddav512c6a89a7b4c5c0c819dfef9b05fc29.png|height=204,width=646!
_Fig. 77: Example of balance sheet differences_ 
The _Summary_ dialogue displays deferred taxes from both periods. Balance sheet difference of – 50,000 in the current period results in the deferred tax liabilities long-term of -15,000 \[= 50,000 x 30%\]. In this example in the _Land and buildings_ position there is the deferred tax asset of 4,500 \[= 15,000 x 30%\]. This results in a total thereof P/L of 10,500 \[plus sign: expenses; minus sign: income\]. 
!worddav130958a07f0569904abf934d481c69ba.png|height=76,width=644!
_Fig. 78: Effects of the 'Local GAAP – Tax Balance' subdialogue in the 'Summary' dialogue_
In the example above the relevant account positions are marked as _long-term{_}, therefore the GTC calculates long-term deferred taxes. 
{*}{_}Subdialogue 'IFRS – Local GAAP'_*

The subdialogue _IFRS – Local GAAP_ displays IFRS balance and the local balance. The _Local balance_ column is copied from the _Local GAAP – Tax Balance_ subdialogue.
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_Fig. 79: 'B/S Comparison' dialogue – subdialogue 'IFRS – Local GAAP'_
The _Import_ column shows balance sheet values imported via the interface; these values cannot be edited. The column _Manually_ can be filled out by the user, e.g. reclassification or adjustments of imported values. The column _Total_ displays the values relevant for calculation of balance sheet differences. 
If you want to use the _Manually_ column in the _IFRS – Local GAAP_ subdialogue, you need to activate the \[ !worddavd4bb8bf3464a135522565ba499e1eb4c.png|height=33,width=256! \] checkbox in the master data dialogue _Company_ first. This checkbox is usually activated by default and _B/S Comparison_ can be edited manually.  
!worddav7246cbe10f4091a1d7c872512402e83f.png|height=93,width=461!
_Fig. 80: 'B/S Comparison' dialogue - columns for import and manual adjustments_
Balance sheet differences between IFRS balance and local balance calculated in the GTC are displayed in the column _Relevant Differences Gross{_}. These differences have to be allocated to the _Thereof_ columns and serve as a tax base for calculation of deferred taxes. Balance-sheet gross differences are multiplied by the country tax rate saved in the master data dialogue _Countries{_}: !worddav7593ab568da3fe0ca6113d301b78e375.png|height=26,width=156! .
The following figure displays balance sheet difference between IFRS and local balance. In the position _Rechte and Lizenzen_ there is a difference of -20,000. The difference is classified as temporary and affecting P/L statement \[thereof differences – P/L statement – 30%\]. A tax rate of 30% is saved in the master data:
!worddavfb4ec7e1c716b401aadfb2603da30129.png|height=239,width=619!
_Fig. 81: Example of balance sheet differences IFRS – Local GAAP_
The _Summary_ dialogue displays deferred taxes from the period. Balance sheet difference of -20,000 in the current period results in the deferred tax liabilities long-term of -6,000 \[= 20,000 x 30%\]. This results in a total thereof P/L of 6,000 \[plus sign: expenses; minus sign: income\]. 
!worddav89d0f2006966afc16c9e2b47f99dcc5f.png|height=88,width=646!
_Fig. 82: Effects of the 'IFRS – Local GAAP' subdialogue in the 'Summary' dialogue_
In the example above the relevant account position is marked as _long-term{_}, therefore the GTC calculates long-term deferred taxes. 
{*}{_}Subdialogue 'Additional Tax'_*

The subdialogue _Additional Tax_ is displayed only for those companies that are not regulated by the German tax law. The aim of this dialogue is to take account of differing tax bases for the local income tax.
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_Fig. 83: 'B/S Comparison' dialogue – Subdialogue_ _'Additional Tax'_
The _Correction to local tax balance_ column can be filled out by the user. Other balance sheet columns are linked to the corresponding subdialogues \[e.g. IRFS balance with the subdialogue _IFRS – Local GAAP{_}\].
If you want to use the _Additional Tax_ subdialogue, you need to activate the \[ !worddavae4c2a6d9f039bdcdac160ad5b557720.png|height=23,width=157! \] checkbox in the master data dialogue _Company_ first. This checkbox is not activated by default.
When using this subdialogue it is assumed that users will make use of \[ !worddav057e3cbf3b41ab5c0e3e23bcdd7ee901.png|height=25,width=123! \] function to split the differences. Balance sheet differences are displayed in the columns _Correction to local tax balance_ and _IFRS Balance{_}. 
The following figure represents a balance sheet difference between _IFRS Balance_ and _Local tax balance sheet{_}. In the position _Rechte and Lizenzen_ there is a difference of 100,000. The difference is classified as temporary and affecting P/L statement \[thereof differences – P/L statement – 20%\]. 
 !worddav5a8bfd7730bc6a511e41f314175ef0a5.png|height=178,width=646!
_Fig. 84: Example of balance sheet differences IFRS - 'Correction to local tax balance' and 'IFRS Balance'_
The _Summary_ dialogue displays deferred taxes from the period. Balance sheet difference of 100,000 in the current period results in the deferred tax of 20,000 \[= 100,000 x 20%\]. This results in a total thereof P/L of -20,000 \[plus sign: expenses; minus sign: income\]. 
 !worddavb8560759c0b0cca1b70adb63591da05c.png|height=90,width=648!
_Fig. 85: Effects of the 'Additional Tax' subdialogue in the 'Summary' dialogue_
In the example above the relevant account position is marked as *long-term{*}, therefore the GTC calculates long-term deferred taxes. 
{*}{_}Subdialogue_* *_'Total IFRS – Tax'_*

The subdialogue _Total IFRS – Tax_ provides an overview of all assets and liabilities in IFRS balance, local balance and local tax balance sheet. The values for these columns cannot be edited, since they are taken directly from other dialogues. The _Relevant Differences Gross_ column shows the difference between the _IFRS balance_ and _Local tax balance sheet_ \[local tax balance sheet value minus IFRS balance value\]. 
!worddav7e43655483ed1394cfec36198b4bbdbd.png|height=148,width=646!
_Fig. 86: 'B/S Comparison' dialogue – subdialogue 'Total IFRS – Tax'_
Values in the subdialogue _Total IFRS – Tax_ are linked to the following subdialogues:

The _Other deferred taxes_ subdialogue allows for direct calculation of deferred taxes per account position \[e.g. adjustments from tax audit\]. This subdialogue works so far without balance differences. The calculated deferred taxes can be entered either into the column _affecting P/L statement_ or _OCI{_}. The classification of deferred taxes with regard to their maturity depends on the settings in the master data dialogue _CoA Group{_}.
The following figure displays the entry in the _Other deferred taxes_ column. In the position _Land and buildings_ there is a deferred tax of 2,500 €. 
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_Fig. 87: Example in the 'Other deferred taxes' subdialogue_
The _Summary_ dialogue displays deferred taxes from the period. Positive entry in the _affecting P/L statement_ column results in a corresponding affecting P/L statement deferred tax of 2,500 €: 
!worddave3ef56e53c60fa6ac4d3705c63cb3aa6.png|height=74,width=646!
_Fig. 88: Effects of the 'Other deferred taxes'_ _subdialogue in the 'Summary' dialogue_
In the example above the relevant account position is marked as _long-term{_}, therefore the GTC calculates long-term deferred taxes. 
{*}{_}Validations in the 'B/S Comparison' dialogue_*