Changes in temporary differences

Go to Tax calculation - Changes in temporary differences to calculate all temporary differences, change in deferred tax and deferred tax / tax assets in the balance sheet.

Under the tab Differences, the system has calculated Tax-increasing and Tax-reducing temporary differences based on values ​​in the Accounting and Taxable columns.

Select Show All to show all lines.

The system generates taxable value equal to the accounting value for fields that may have a taxable value. You can override fields by hovering over the value in the field and clicking on the symbol that appears. Select Override.

Some lines require manual input and this is indicated by the lines being blue and clickable. When you click on a blue line, it opens its own view that shows tax calculation of this particular item, with white fields for entering values. For further information, see Field explanations.

Select the blue arrow next to a line to see which client accounts in the income statement which are linked to each line as well as the specified taxable value on the relevant lines.

Total temporary differences affecting tax payable summarizes the lines on the tab Differences, tax payable and is displayed in Changes in temporary differences in the left menu. This corresponds to the previous fields in RF-1217, up until field 100. Click on Show all to see rows without amount.

Differences, deferred tax summarizes the lines from the tab Differences, deferred tax This corresponds to field the previous fields 111 to field 165 in RF-1217. Click on Show all to see rows without amount

Total temporary differences from the two tabs Differences, tax payable and Differences, deferred tax is transferred and summarized on the tab Deferred tax/tax assets . In this tab, offsetting of temporary differences is made. Basis for calculation of deferred tax is shown, as well as Deferred tax 01.01 and Deferred tax assets 31.12. The deferred tax / tax assets is calculated by multiplying the sum of the differences that are included in the calculation basis with the applicable tax rate.

Full balancing of tax-increasing and tax-deductible temporary differences is most common. There are some limited exceptions. If the tax-deductible temporary differences are reversed at a later date than the tax-increasing differences, it must be assessed whether the tax-deductible differences must be excluded from the basis of calculation. In particular, you should consider whether offsetting can be done when there are tax-deductible temporary differences related to construction, long-term receivables, and if you have a adjustment limitation of interest deductibility between related. Deductible differences that shall not be offset are a manual input field in the tab Deferred tax/tax assets.

The option whether or not to recognize the deferred tax assets in the balance sheet per 31.12, is made in the tab Deferred tax/tax assets. The recognition of deferred tax assets can only be done if it is probable that the tax assets can be utilized by the company. Small companies can choose not to recognize deferred tax assets. If Not balanced is selected under Deferred tax/tax assets 31.12, then the value inBasis for calculation of deferred tax is transferred to the line Deductible differences that can not be offset.

In the tab Overview temporary differences, a summary of temporary differences is displayed as of 01.01 and 31.12, and the changes. Calculated deferred tax/tax assets is also shown. This overview is shown as part of the note Taxunder Year-end closing - Annual report.

Total temporary differences affecting tax payable are calculated 01.01 and 31.12, and appear as subsum amounts under the tab Differences. Change in temporary differences that affect tax payable is calculated by the system and transferred to Changes in temporary differences in the calculation view on the left hand side. This value corresponds to field 100 in RF-1217.

The closing entry Changes in deferred tax / deferred tax assets is updated automatically.

Field explanations

Fixed assets (tangible and intangible)

Click on the line Fixed and Intangible assets to update tax values. You will then be navigated to Information - Tax-related depreciations.

Please note that the tax value on 31.12. for operating assets must be specified in the form of tax objects in the function for tax depreciation, such an overriding of the field will give an error message when validating the business specification under Controls.

Long term receivables and liabilities in foreign currency

The accounting value of long-term receivables and liabilities in foreign currency is the exchange rate on balance date. The taxable value is generally the same as the accounting value. Companies with long-term receivables or liabilities in foreign currency must keep a revaluation account, and temporary differences may arise between the accounting and the tax values associated therewith.

Projects in progress

Small companies that recognize long-term production contracts as income when the contract is completed, should record the capitalized cost of production as the accounting value. Companies using current settlement shall record accrued contract revenue as the accounting value. Taxable income from work contracts under progress shall not be recognized before the work is completed. Until they are completed, production contracts should be valued according to the rules for making after order, see § 14-5 (2) a and b of the tax law.

Inventories / Biological assets (IFRS)

Click on the blue link Inventory/biological assets to calculate the tax value of goods.

Receivables and debt according to the receivable model

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Accounts receivable

You can calculate the tax value by clicking on the Account receivables line. You will then be navigated to Information - Account receivables.

Other receivables (including long-term)

The accounting value of other short- or long-term receivables is the value after depreciation of unrealized losses. The tax value will be the denominated value.

Accounting value of leasing object in the balance sheet

If a lease agreement is considered to be financial in accordance with the accounting rules (recorded), but taxable as a lease (operating lease), temporary differences arise on the asset side and on the debt side.

Accounting value of leasing debt in the balance sheet

If a lease agreement is considered to be financial in accordance with the accounting rules (recognized in the balance sheet), but taxable as a lease (operating lease), temporary differences arise on the asset side and on the debt side.

Balance on profit and loss account

You can update your profit and loss account balance by clicking on the line Profit and loss account. You will then be navigated to Information - Profit-/loss account.

Conditional tax-free gains

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Unearned income

Accounting provisions must be reversed in its entirety as it is not possible to make a corresponding taxable provision.

Accounting provisions for liabilities

Accounting provisions must be reversed in its entirety as it is not possible to make a corresponding taxable offset. This value is automatically transferred to RF-1217, field 54.

Accounting provisions for losses on contracts

Accounting provisions must be reversed in its entirety as it is not possible to make a corresponding taxable offset. This value is automatically transferred to RF-1217, field 70.

Net pension liabilities entered in the balance sheet

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Net pension assets

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Taxable provisions for pension premium etc.

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Obligations taken upon acquisition of business

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Other differences

Specify all other temporary differences between accounting and tax values ​​/ results that are not handled in other fields..

Shares and other financial institutions, not covered by the exemption method.

In this field, shares and other financial instruments, which are not covered by the exemption method, are specified.

Income allocated dividend from subsidiaries and associated companies

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Shares in businesses assessed as partnerships, not covered by the exemption method.

In this field, shares in businesses assessed as partnerships, that are not covered by the exemption method, are specified.

Accounting differences on participations in businesses assessed as partnerships

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Accumulated taxable carry-forward loss

The value is obtained from the values ​​recorded under the left-hand menu item Applied deficit carry forward.

Recalculated unused credit deduction to carry-forward

.Here, the value must be carried forward credit deduction divided by tax rate (grossed basis for credit deduction

Taxable carryable unused correctional income

In this field, the cut-off interest deduction is entered for carry-forward

Reduced interest deduction to carry-forward

In this field, the cut-off interest deduction is entered for carry-forward.

Other differences that affects deferred tax

Differences that cannot be entered elsewhere and which only affect deferred tax are entered in this field.