DMI48FAQs

Reports

All things remaining the same, we ran the Provision Report with Qtr 2 as current provision and Qtr 1 as Last Provision. There are amounts included in the opening balance that we are unable to identify as calculated. The end of period balances are accurate, but we are having problems with reconciling the opening balances.

The opening balances for the provision and disclosure reports are based on the calculation results saved with your last provision or last disclosure file. After finishing your work with single issues/entities/jurisdictions, we suggest selecting ‘All Groups’ for your ‘Run Issue Selection’ and ‘All Periods’ for your ‘Jurisdiction and Period Selection’ on the Analyze screen before computing. This will ensure that the calculation and the opening balance includes all of your previous data.

Will the system be able to calculate a temporary and deferred breakout? Is there an accompanying report planned?

The provision report currently provides a distinction between taxes that are temporary and those that are permanent. The Issue Rollfoward report breaks the interest computed between the two parameters. If you establish issue groups as permanent and deferred, additional reports will provide the desired reporting format.

When viewing a last disclosure or last provision report, the opening balance is blank.

Results are saved to the data file after they are computed. You must first compute the results for Last Disclosure and/or Last Provision data files before they can be loaded for comparison.

The total contingent amount of a settlement appears on the settlement line of the disclosure report and is not split between the settlement line and the reduction for the prior year’s tax position. Is this the correct reporting method?

Yes, the report is correct. As an example:

At one disclosure period, there is a liability defined for 1.5M. Prior to the next disclosure period, the amount settles for 1.2M. In this case, .3M will show as a reduction in prior years and 1.2M will appear as settled.

When analyzing your current data compared to prior disclosures, please note that users should be accessing two data files, one with the current data and one with the prior disclosure position (Last Disclosure). Secondly, the Settlement Date entered should be a date occurring between the Last Disclosure and current DMI48 Data Source file Reserve dates.

On the Provision reports, the adjustments that we have closed statute on show "New SOL 9/15/07" in the Change Information column, but they continue to carry across into the "Tax Temporary" and "Total Columns" causing the summations to be incorrect.

This problem should only arise when completing the initial quarter’s work in the DMI48 software, if there is no Last Provision file attached. The problem results because you have not developed or assigned a Last Provision file which should contain the original adjusting entry with an Open status for comparison. Going forward, it will not be a problem because there will be a comparable Last Provision file. To correctly account for this, you should create a Last Provision file using the current working file as a starting point to get back to a comparable position for the last reporting period and then assign it as the Last Provision file. Make sure to update the Reserve Date in the General Paramaters tab accordingly.

How do I get adjustments to be included on the Disclosure Reports but not on the Provision reports?

Currently there is no switch at the adjustment level to indicate an adjustment should be reflected in the Disclosure tabular rollforward but not the Provision.  Instead, we recommend the following:

Set up a new Issue Group for your Disclosure only adjustments. When you run the computations on the Analyze page, you can select and de-select the Issue Groups you wish to include/exclude in the reports. Select this new Issue Group when running the computations for the Disclosure Reports, and de-select this Issue Group and compute results again when running the Provision Reports.

When you rollforward, just remember that the data source file you have designated as the Last Disclosure file should have this Issue Group selected when you run the computations. Similarly, the file you have designated as the Last Provision file should NOT have this Issue Group selected when you run the computations and attach it for comparison purposes. You will need two year-end files for this reason, rather than one which would normally serve as the Last Disclosure and Last Provision files when you start work on the next quarter data.

How can I assign statute expiration dates to individual tax adjustments so that they are correctly displayed in the SOL Aging Report?

The SOL Aging Report first looks to the individual Status Change Date in the Tax Adjustments screen, and then to default  Assessment SOL date set for the jurisdiction and period as provided on the Jurisdiction/Periods screen.

Tax and Interest Software

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