B_S Comparison0

Basic functions

The basic functions of the B/S Comparison dialogue can be found on the button bar of this dialogue.

Fig. 69: Button bar in the 'B/S Comparison' dialogue
Save [ Unable to render embedded object: File (worddav6ffe33a92855b38232846b4086607bc0.png) not found. ]
The diskette symbol saves a data set. All entries in the B/S Comparison dialogue must be saved; this applies even if the values are imported and no manual changes have been made.
Import [ ]
The import button calls up the dialogue where you can import values for the B/S Comparison [and tax detail dialogues]. The dialogue can also be called up directly in the main dialogue Company [ ].
Create comment [ ]
This button can be used to create comments for the B/S Comparison.
Calculate local GAAP [ ]
This function is available in the subdialogue IFRS – Local GAAP. The values from the IFRS balance are copied to the local balance. The values are copied to the Local GAAP – Tax Balance tab automatically. Please mind that existing Local GAAP values are overwritten. A subsequent recovery of these values is not possible.
Maintain columns [ ]
A click on this button opens a new subdialogue.
Reset columns [ ]
This button allows the GTC users to reset the contents of all columns to zero. Before that a security query pops up, upon its confirmation the data is reset. A subsequent restoration of deleted data is not possible.

Fig. 70: Securoty query for 'Reset Columns' option
Split differences [ Unable to render embedded object: File (worddav3a0e67dbb8198279eef57684bb4254b0.png) not found. ]
This function depends on the settings for calculated balance sheet differences split in the master data dialogue CoA Group. The function is activated separately in the subdialogues Local GAAP – Tax Balance and IFRS – Local GAAP.
To automate the process it is predefined in the master data whether possible balance differences in the selected account position are temporal or permanent. In addition, you have to define whether value movement affects P/L statement [profit and loss statement] or not [OCI].
The Split differences function uses this information for automatic allocation of balance differences to thereof columns:

• 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.

Fig. 71: Thereof columns in B/S Comparison
Reports [ ]
The Reports button contains a link to the main dialogue Reports – .
To true-up period [ ]
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 [ ] button.
Expand/collapse account positions [ ]
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 [ ]
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.
<ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="2843c158-db76-47b3-ab7c-8e2849985046"><ac:parameter ac:name="">Toc462664778</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="83c73565-5b93-43a6-a986-0dbd360a4277"><ac:parameter ac:name="">_Toc482190368</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="0d6c6e49-55e2-4b17-9152-2201d5331551"><ac:parameter ac:name="">_Toc483991104</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="c57bc705-997f-4f0c-8ebe-7dfa5a56f9e6"><ac:parameter ac:name="">SNWID_a65fac4cee5f437180780f7f935edc82</ac:parameter></ac:structured-macro> 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.

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:

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:


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.
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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.

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 [ ] checkbox in the master data dialogue Company first. This checkbox is usually activated by default and B/S Comparison can be edited manually.

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:[ ].
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:

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].

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.
<ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="ed630840-ee2b-481e-b0e3-c9862b770934"><ac:parameter ac:name="">Toc462664780</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="c02bf11b-8e63-42c1-873b-866b939379f7"><ac:parameter ac:name="">_Toc482190370</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="860f690c-3db0-44c9-b0fc-9d2187d3bcd9"><ac:parameter ac:name="">_Toc483991106</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="9edb4fec-e400-414b-ba24-83a13ff1fb1c"><ac:parameter ac:name="">SNWID_f4414840979c4d339d410f7f935ec3df</ac:parameter></ac:structured-macro> 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.

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 [ ] checkbox in the master data dialogue Company first. This checkbox is usually activated by default and B/S Comparison can be edited manually.

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: .
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:

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].

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.
<ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="f9628476-bde6-450e-a79a-d2af9c529720"><ac:parameter ac:name="">Toc462664781</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="511fe688-a701-47ac-981c-7997151eb14b"><ac:parameter ac:name="">_Toc482190371</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="9019fdd1-6c6c-428c-b849-ab2167ec7b37"><ac:parameter ac:name="">_Toc483991107</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="295938ae-9bdb-44e6-847d-d336c71cbc03"><ac:parameter ac:name="">SNWID_d58edd76c584475885600f7f935ed035</ac:parameter></ac:structured-macro> 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.

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 [ ] 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 [ ] 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%].

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].

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.
<ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="3fbdf309-0308-4be2-9b5d-7c9ca979a7f2"><ac:parameter ac:name="">Toc462664782</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="6b4d9c8e-6cde-4675-be16-724a30f0d9a5"><ac:parameter ac:name="">_Toc482190372</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="7d7abaf7-48ba-4d4d-b067-d39776b4ce69"><ac:parameter ac:name="">_Toc483991108</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="511198ee-65be-4b73-968d-08d7c2350458"><ac:parameter ac:name="">SNWID_e256f699d3dd4129bf5f0f7f935ed026</ac:parameter></ac:structured-macro> 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].

Fig. 86: 'B/S Comparison' dialogue – subdialogue 'Total IFRS – Tax'
Values in the subdialogue Total IFRS – Tax are linked to the following subdialogues:

• Local GAAP – Tax Balance
• IFRS – Local GAAP

The following subdialogues are not relevant for the Total IFRS – Tax subdialogue; they are used for calculation of deferred taxes and displayed in the Summary dialogue:

• Supplementary tax balance sheet
• Additional Tax
• Other deferred taxes

Subdialogue 'Other deferred taxes'

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 €.

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 €:

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.
<ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="81f532d7-e228-481d-a863-9213780cb8af"><ac:parameter ac:name="">Toc462664784</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="8f0ac13a-e56f-4639-ba5d-82e533d844c0"><ac:parameter ac:name="">_Toc482190374</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="b2f88c32-a072-4504-956c-e47a96d9f76b"><ac:parameter ac:name="">_Toc483991110</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="d89c452b-185c-409c-b870-074e631d9e3a"><ac:parameter ac:name="">SNWID_a1db90a9f3cd4f8c821b0f7f935ed64e</ac:parameter></ac:structured-macro> Validations in the 'B/S Comparison' dialogue_

A number of validations are implemented in the B/S Comparison dialogue. In case of any inconsistencies, the corresponding error messages are displayed in the dialogue header. The milestone Deferred Taxes cannot be closed if there are validation errors.
Validation rules are applied to every subdialogue, i.e. both for the Local GAAP – Tax Balance and IFRS – Local GAAP.

Fig. 89: Error messages in the 'B/S Comparison' dialogue
The balance sheet isn't balanced or isn't saved
Balance sheet can be saved by clicking on the Save symbol [ Unable to render embedded object: File (worddav6ffe33a92855b38232846b4086607bc0.png) not found. ].
If the balance sheet is not balanced [sum of assets unequal sum of liabilities], an error message pops up. In addition, an exclamation mark appears in the upper B/S comparison row:

Fig. 90: Error message if the balance sheet is not balanced
The upper row of the balance sheet has to contain zero values [a 'balanced' balance sheet]. The only exception here is the column Relevant Differences Gross: it may contain non-zero values and this does not result in a validation error.

Fig. 91: Column 'Relevant Differences Gross'
Allocation of difference incomplete
Calculated balance sheet differences have to be allocated to different thereof columns. The validation rule Allocation of difference incomplete checks whether this requirement is met. Not allocated differences are marked in the table view with an exclamation mark:

Fig. 92: Error message if the allocation of difference is incomplete
<ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="8e5dcc5c-8540-4dcf-85c3-08a4bb45b42a"><ac:parameter ac:name="">Toc462664785</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="b90ce3f0-2ddc-414d-a4b7-67a7c838605c"><ac:parameter ac:name="">_Toc482190375</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="ed70ce3f-9b31-4fd0-8e85-6f237f7c58c4"><ac:parameter ac:name="">_Toc483991111</ac:parameter></ac:structured-macro><ac:structured-macro ac:name="anchor" ac:schema-version="1" ac:macro-id="c4fb58fc-4410-4bdc-8b73-b742ccf45eb2"><ac:parameter ac:name="">SNWID_f985d06243af4b75a0000f7f935ed031</ac:parameter></ac:structured-macro> Theoretical background: balance sheet comparison tips_

Basically, there are four possible scenarios that can result in temporary differences and deferred taxes:
Balance sheet assets:

1. IFRS value > tax value [taxable temporal difference / deferred taxes liability]

2. IFRS value < tax value [deductible temporal difference / deferred taxes asset]

Balance sheet liabilities:

1. IFRS value < tax value [taxable temporal difference / deferred taxes liability]

2. IFRS value > tax value [deductible temporal difference / deferred taxes asset]

Asset values in the GTC are displayed with a '+' sign, while liability values with a '-' sign. This results in the following gross differences for every individual column:

Table 11: Sign for 'Gross Differences' column
A '+' sign in the 'Relevant Differences Gross' column results in deferred taxes asset; a '-' sign – in deferred taxes liability:
'Relevant Differences Gross' column: '+' sign:

Fig. 93: Example of a '+' sign in the 'Relevant Differences Gross' column – 'B/S Comparison' dialogue

Fig. 94: Example of a '+' sign in the 'Relevant Differences Gross' column – 'Summary' dialogue
'Relevant Differences Gross' column: '-' sign:

Fig. 95: Example of a '-' sign in the 'Relevant Differences Gross' column – 'B/S Comparison' dialogue

Fig. 96: Example of a '-' sign in the 'Relevant Differences Gross' column – 'Summary' dialogue