Option 1 - Scenario A

The first option for CTA is an existing feature that does not require additional setup for it to function. Only temporary differences are used for the example. However, the CTA calculation takes all types of adjustments into consideration.

Unit Tax Rates are the Same

If there are differences in the Weighted Average FX Rate, Beginning FX Rate, and Ending FX Rate, a CTA adjustment must be made for all temporary differences.

Option 1 - Scenario A - Reports

The CTA is in the Tax Provision report. It is used to calculate the Deferred Tax Provision.

Expanded B/S

The CTA calculation can be viewed in the Deferred Balances Report (cir expanded b/s).

Expanded I/S

The CTA calculation can be viewed in the Deferred Balances Report (expanded i/s).