Fixed Asset Book vs Tax Data

Summary:

We are using Fixed Asset Book vs Tax Data to calculate temporary differences and deferred tax for both Tax Provision and RTA purposes. In some cases, the tax values for some assets used for RTA may differ from those used for Tax Provision, resulting in different closing asset balances between the two processes. For example Assset A Tax Closing Balance for P12 is 1000, while book closing balance is 900. So temporary difference is 100. In P13 for RTA, the tax closing balance was adjusted to 1100, making the temp difference 200.

However, this difference is not being carried forward into the opening balance of the following financial year for Tax Provision for that asset. The opening balance for P1 next year is still 1000 instead of 1100. This will result in the temp difference back to 100 in the form.