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Foreign divisional consolidations

Foreign entity binder properties for consolidations

You'll need to set the options in Binder Properties International identically for the members of a foreign divisional consolidation (including any nested consolidations).
Options include:
  • Exchange rate chart and function currency
  • Section 987 (if available based on entity type)
  • Sec. 954(b)(4) High Tax Election
  • Interest apportionment method
  • Apportionment optimization
  • Foreign entity type: Controlled Foreign Corporation, Foreign Partnership, or 10/50 Company
While a consistent functional currency's required, the
Country of Incorporation
 and
Country of Operations
 selections may be different. The Country of Operations determines the binder’s local currency and gets used for TAS Preliminary Balances and adjustments. The
Transfer Functional Currency to Form 8858
 option sends either local or functional currency to the Form 8858.
When the functional currency of the divisional consolidation group differs from the functional currency of a related foreign disregarded entity (member binder), set the income tax local currency of the disregarded entity to the actual functional currency of that entity.
Deselect the
Transfer Functional Currency to Form 8858
 option to send the income tax local currency (the FDEs actual functional currency) amounts to Form 8858 Schedules C and H.

This article applies to:

  • PRODUCT: ONESOURCE Income Tax
  • Return type: 1120 Corporation
  • Subject: Consolidations

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