CoA Group

Copy based on

Creates a copy based on an existing balance sheet position.

Account ID

An individual account ID must be assigned for each balance sheet position. The account ID can no longer be edited afterward and is also no longer available after deleting the balance sheet position.

The name of the balance sheet position is not entered in this field. This only takes place after creation in a subsequently displayed table area (see Names of Balance Sheet Positions in Multiple Languages).

Reporting Dimension

During administration of the group balance sheet, the standard reporting dimension [---] is always assigned and cannot be edited. This attribute can only be changed for specific companies in the CoA Company workspace.

Superior account position

The structure of the balance sheet is defined by specifying the superior account position. The superior account position is always the sum of the respective subordinate positions. In the B/S Comparison workspace, the structure is indented by leading periods and displayed below the respective superior account position:

Relevant for current taxes

This specification determines that the balance sheet position affects the tax balance profit. For German companies, this refers to balance-sheet-internal tax differences pursuant to § 60 (2) EStDV. Consequently, only deviations between the local balance (local GAAP) and the tax balance are taken into account.

The P/L-effective change in the tax balance surplus/deficit (this change represents the tax balance surplus/deficit result of the respective fiscal year) is automatically calculated by Income Taxes and displayed as a proposed value for the purpose of calculating actual taxes (for example) in the folder Current Taxes.

Account is relevant for deferred tax

Certain balance sheet positions, such as equity or tax positions, are excluded from the determination of deferred taxes. For such positions, deactivate the check box Account is relevant for deferred tax. Income Taxes does not take possible balance sheet differences into account for these items.

Positions that are relevant for the calculation of deferred taxes or for tax rate reconciliation (TRR) must be classified as temporary or permanent. Activate the check box Account is relevant for deferred tax accordingly. Activating it makes these rows of the B/S comparison editable for input regarding the allocation of the gross balance sheet differences to “thereof” columns.

“Thereof” columns provide standard allocation options for purposes related to dividing balance sheet differences. The definition of the following attributes offers the option of automatic division in the B/S Comparison dialog:

• P/L differences
• OCI differences
• Differences in permanent P/L
• Differences in permanent OCI

Permanent balance sheet differences, such as shares in affiliated companies under German tax law (§ 8b KStG), do not result in deferred taxes. Nevertheless, activate the check box Account is relevant for deferred tax, as this may result in effects for tax rate reconciliation (TRR).

Relevant for True Up

The check box Relevant for True Up is automatically activated. Deactivate the check box if a position should not be included in the calculation of proposed True Up values.

Temporary

Balance sheet positions for which the Temporary check box is activated will trigger the calculation of deferred taxes in the event of any balance sheet differences in the tool. Therefore, activate the check box for all balance sheet positions where taxable (deferred tax liabilities - DTL) or deductible (deferred tax assets - DTA) temporary differences may arise. In this case, also activate the check box Account is relevant for deferred tax.

Conversely, this means that balance sheet positions that are not classified as temporary are considered permanent. Permanent differences do not lead to the calculation of deferred taxes, but may be relevant for purposes of tax rate reconciliation (TRR).

Temporary difference affecting equity

Balance sheet positions for which the check box Temporary difference affecting equity is activated do not trigger a P/L effect when calculating deferred taxes, but are instead reflected in the OCI (other comprehensive income), which does not affect the corresponding result. Adjustments involving temporary differences affecting equity occur in the area of IFRS, such as with financial instruments (IAS 39) or pensions (IAS 19). Deferred taxes that are associated with these changes in amount must also be accounted for in a manner that does not affect the corresponding result. The OCI effect of deferred taxes is reflected in the Summary workspace.

Balance sheet positions for which the check box Temporary difference affecting equity is not activated (= affecting P&L) trigger a P/L effect when calculating deferred taxes. The P/L effect of deferred taxes is reflected in the Summary and TRR workspaces, for example.

Choose between affecting P&Land affecting OCI. The effect on taxable income of the adjustment of deferred taxes generally depends on the underlying accounting circumstances at hand. If the change in a balance position (e.g. depreciation) is accounted for via P/L, the deferred taxes attributable to this must also be considered as affecting P.L.

OCI category

Adjustments affecting OCI can be assigned to a specific OCI issue, for example, AFS securities. The individual issues are maintained in the master data under Administrationin the area Revaluation surplus.

Income statement-related presentation of OCI issues:

Preselection in B/S comparisons is controlled via the Affecting P&L setting. If differences are split automatically, the difference will be allocated to the P/L column in the “thereof” column when the Affecting P&L setting is activated. However, it may be necessary to display additional differences affecting OCI for this position in a different “thereof” column. In order for this difference to be assigned to a specific OCI issue, all OCI issues available for selection are displayed, even when the setting Affecting P&L is activated.

Short term temporary difference

This option defines the maturity of a balance sheet position. TCR makes it possible to divide deferred taxes into short-dated and long-dated positions. If the check box Short term temporary difference is activated, deferred taxes attributable to this balance sheet position will also be classified as short-dated.

Mapping the maturity structure affects the positions netted of deferred taxes within the tools: Short-dated deferred tax assets are netted with short-dated deferred tax liabilities, and long-dated deferred tax assets with long-dated deferred tax liabilities. The division of balance sheet positions into short-dated and long-dated positions is not mandatory.

Disclosed major class of deferred tax

For balance sheet positions that are to be evaluated for the disclosed major class of deferred tax, activate the Disclosed major class of deferred tax check box. These balance sheet positions are displayed aggregated in the Company folder in the Report DT workspace. Either the upper or the lower level in the disclosed major class of deferred tax can be indicated for each position. This prevents balance sheet positions from being accounted for twice.

It makes sense to have the resulting (shortened) balance sheet structure match the balance sheet structure of the company's annual report. This ensures that the notes on deferred taxes for each balance sheet position can be taken directly from Income Taxes.

Split differences automatically

The identified balance sheet differences in the B/S Comparison workspace must be split into the following columns:

• P/L differences
• OCI differences
• Permanent P/L differences
• Permanent OCI differences

If the Split differences automatically check box is activated, these differences will be split automatically. Otherwise, the gross differences must be divided across the columns manually. This can be useful, for example, when part of the gross difference is to be classified as temporary and part as permanent. The automatic splitting of differences is carried out in the B/S Comparison workspace using the separate Split differences button.

Residual position

A balance sheet should ultimately always be balanced. To have the balancing item (such as a profit position) calculated automatically, you can designate an item in the balance sheet structure as a residual position. If values are then imported or entered manually, the system will check in the balance sheet comparison during saving whether a validation difference would occur. If this is the case, the calculated difference is posted to the residual position. 

The balancing item can be set separately for IFRS, HGB, and HB/StB differences.