Deferred Taxes of (Sub-)Group

Overview

The workspace Deferred Taxes in the (Sub-) Group are aggregates the deferred tax assets and deferred tax liabilities calculated in the Company workspace. The view is divided into several table areas:

  • Display of current deferred taxes per company
  • Recording of consolidation adjustments
  • Addition/disposal of companies
  • Deferred taxes summary

The Deferred Taxes workspace is displayed under (Sub-) Group | Deferred Taxes for example as follows:

'Deferred taxes' workspace for a (sub-) group
'Deferred taxes' workspace for a (sub-) group
Display of Current Deferred Taxes per Company

The first table area displays the current balances of deferred taxes and the corresponding P&L or OCI effects. The view begins with the tax group members and intermediate tax group parents. In the event that the option Deliver deferred taxes is activated in the master data (Companies workspace), the deferred taxes are consolidated at the level of the tax group parent:

Deferred taxes at the tax group parent level
Deferred taxes at the tax group parent level

In the event that the option Deliver deferred taxes is not activated, the deferred taxes are consolidated per tax group member. The total after offsetting is the same in both variants.

The other dependent companies are listed under the tax group members. The offsetting of deferred taxes is carried out in accordance with IAS 12 only at the level of the respective individual company.

Offsetting deferred taxes
Offsetting deferred taxes

In the upper area, the list can be used to restrict the countries displayed. For example, only German companies can be filtered in the view.

In addition to displaying the current deferred tax assets and deferred tax liabilities, there is the table sub-area Change:


Column

Description


Deferred Taxes

Aggregated change in deferred tax balance


Expense (Profit)

Change in deferred taxes affecting P&L 


Other Comprehensive Income

Change in deferred taxes affecting OCI


Currency Exchange

Foreign currency translation is explained in a separate chapter.


Addition/­Disposal

These columns identify companies that, according to the master data (Companies workspace), have been added or disposed of compared to the prior period. In addition, a separate display of these companies is provided further down in the workspace.


The display of maturities for deferred tax balances is related to the setting Including balancing (Accounting standard: IFRS) from the company master data. If this is activated, short-term and long-term deferred taxes are displayed.

Recording of Consolidation Adjustments

For purposes of the consolidated financial statements, in addition to the deferred taxes at the reporting data level (= area Company), the deferred taxes attributable to consolidation postings must also be taken into account.

Consolidation postings are recorded in the Adjustment area:

Consolidation adjustments in the ‘(Sub-)Group | Deferred Taxes’ workspace
Consolidation adjustments in the ‘(Sub-)Group | Deferred Taxes’ workspace

Several preset consolidation types are available for recording in the workspace described here. A new record is created via the plus symbol. The corresponding deferred taxes can then be recorded.

Deferred Taxes Summary

At the end of the workspace Deferred Taxes for a subgroup is the Deferred taxes summary table area. This area aggregates the deferred taxes at the company level (or reporting data level) and the group postings (if recorded):

Deferred taxes summary
Deferred taxes summary

The column Current Period can be reconciled with the values from the table area Display of current deferred taxes per company(columns Deferred tax assets and Deferred tax liabilities). The column Adjustment or Adjustment (corr.) corresponds with the indication of changes per company.

Validation

A validation is performed below the table. The value must equal zero. If a non-zero amount is displayed there, this is an indication of an incorrect validation of the summary. The change in deferred taxes (sub-group level) compared to the prior period is validated.

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