FASB 109 Projection Report
Purpose
For each selected asset, the FASB 109 Projection report identifies all temporary differences between three sets of books:
- the applicable financial statement of your choice (the Internal Book or one of the user-defined books) and the Tax book
- the AMT book and the ACE book.
It also projects the reversal of those differences over the projection period, in accordance with Financial Accounting Standards Board Statement Number 109 - Accounting for Income Taxes. You can print an additional report that compares the applicable financial statement with the State book.
Note: When using the “Print Additional Report for State Book” option the column will still be labeled as “State” even if the State book title has been customized.
The three temporary differences isolate timing differences because of the use of different depreciation rules in the different books, specifically, different depreciation methods and estimated lives. The most important difference is the difference between the financial statement and the Tax (or State) book. This difference measures the amount subject to the deferred tax liability that arises from the regular tax.
Note: There is no longer an ACE Depreciation Adjustment for property placed in service after December 31, 1993. In your company setup, if you have not specified a book emulation for the ACE book, then the Depreciation Method field automatically defaults to "No" in the ACE book for these assets. Therefore, the FASB Projection 109 report includes these assets, calculates AMT depreciation, displays "NA" for ACE depreciation, and displays a zero in the "AMT less ACE" column.
If you have specified that you want the ACE book to emulate the AMT book, the FASB 109 Projection report includes the assets, calculates ACE depreciation the same as AMT depreciation, and displays a zero in the "AMT less ACE" column. Both approaches have the same end result: a zero amount in the "AMT less ACE" column. See Emulate Book for an explanation of emulating books.
Tip: Before you can define the FASB 109 Projection report, at least one of the financial statement books must be open. The financial statement book can be the Internal Book or one of the user-defined books. If none of these books are open, return to the Book Defaults tab of the Edit Company window, and open the book you want to use as the applicable financial statement.