Skip to main content

Solutions

Products

Recommended products

Questions? We are here to help.
Contact us

Purchase

Questions? We are here to help.

Resources

Foreign divisional consolidations

Foreign Divisions and Hybrid Member Binders

When you select the international entity type
Division of Foreign Entity,
the foreign division, divisional consolidation, parent or subsidiary binder is treated as a foreign disregarded entity (division or branch) in the current year. Since the TAS navigation tree inside a binder is controlled by the entity type, screens that are only applicable to legal entity treatment (such as
Beginning Balances – E&P and Taxes
and
Other Adjustments
screens) appear in the navigation tree in a foreign parent, subsidiary and divisional consolidation binder with an international entity type of
Division of Foreign Entity
.
We recommend limiting data entry within a foreign division (traditional or hybrid) to:
  • Balances (non-consolidated binders only)
  • Adjustments (non-consolidated binders only)
  • Currency Translation (non-consolidated binders only)
  • International screens when Sourcing at the Division Level
    • Sourcing
    • Interest Apportionment Information
    • Current Year Taxes Paid/Accrued
    • Intercompany Transactions (other than Dividend Payments) for tax years 2011 and later when you select
      Division
       as the Intercompany Data Entry and Processing Level indicator.
  • US Dollar Book Balances Override
The International Reports and International Top Con Compute screens are not available on the navigation tree in a hybrid division.

Data Entry - Sourcing Level Messages

The Sourcing Workpaper, Interest Apportionment and Current Year Taxes Paid/Accrued data entry and import rules currently applied to traditional divisions have been extended to hybrid divisions (foreign parent, subsidiary and divisional consolidation binders with an international entity type of Division of Foreign Entity).
If the binder is a divisional consolidation and the sourcing level is
Division
, data entry and import is not allowed. The following notification message appears:
Data entry on this screen is NOT allowed because the Divisional consolidation data entry option has not been selected for this binder on the International tab of the Binder properties screen.
If the binder is a member of a divisional consolidation and the sourcing level is
Divisional Consolidation
, the following message appears:
Data entry on this screen is NOT allowed because the Divisional consolidation data entry option has not been selected for this binder on the International tab of the Binder properties screen.

Data Entry - Hybrid Division Messages

International screens are available in foreign parent, subsidiary, and divisional consolidation binders that are not available in foreign divisions. When the international entity type is set to Division of Foreign Entity in a parent, subsidiary or divisional consolidation binder, the entity is treated as a “division” and data entry is not expected in the following screens:
  • Beginning Balances - E&P and Taxes (E&P Error)
  • Investment in U.S. Property and PFIC
  • Qualified / Chain Deficits (E&P Error)
  • Hovering Deficits
  • Subpart F Recapture (E&P Error)
  • LIFO Limitation Adjustment
  • Intercompany Payments (unless the related divisional consolidation’s
    Intercompany Data Entry and Processing Level
     indicator is set to
    Division
    )
  • Intercompany Receipts (unless the related divisional consolidation’s
    Intercompany Data Entry and Processing Level
     indicator is set to
    Division
    )
note
Refer to the Processing Intercompany Transactions in Foreign Division Binders for more information regarding the treatment of look through payments and receipts in divisions for tax years 2011 and later.
The following notification message appears on the screen:
Data entered on this screen will be DISREGARDED during international computes because this binder is a foreign disregarded entity.
 For some data entry types, a comprehensive edit error is produced during calculations.

This article applies to:

  • PRODUCT: ONESOURCE Income Tax
  • Return type: 1120 Corporation,international
  • Subject: Binders

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close