Book vs Tax plan
This window is used to view the values related to the depreciation reintegration and to the book vs tax depreciation for the selected asset.
These values concern the application of the French fiscal rules according to which the asset depreciation must take into account:
- its actual usage duration,
- the mode that best conveys the expected future cash flows deriving from the asset,
- its residual value at the end of the usage, if this value is measurable and significant.
In addition, tax authorities:
- do not accept that the residual value is taken into account,
- impose the usage duration as the depreciation duration, apart from exceptions.
This situation may generate greater depreciation charge in the Accounting plan than in the Financial plan, particularly if the actual usage duration is shorter than the usage duration and if the possible residual value does not compensate the variance between the accounting charge and the financial charge.
Since this variance is not tax-deductible, it must be posted as a depreciation to reintegrate in the fiscal year of its charge. However, if a book vs tax reversal is being carried out on this asset, the user needs to balance the book vs tax amount before generating reintegration.
This window is accessible by right-clicking:
- from the Financial assets management function, in View mode only, on one of the lines related to the Accounting or Fiscal plans of the depreciation table,
- from the Depreciation plan function, if the Accounting or Fiscal plans are active.
The columns related to the depreciation reintegration are hidden if there is no depreciation to reintegrate during the asset life.
Prerequisite
Refer to documentation Implementation
Screen management
This window is only accessible in viewing mode.
It consists of:
- A header containing the company, site and asset ID information.
- A reminder of the depreciation methods of the accounting plan and fiscal plan: depreciation start and end dates, method, duration, rate, depreciation basis and specific rule.
- A table presenting the values related to the depreciation reintegration (first three columns) and the values related to the book vs tax depreciation, expressed in the depreciation plan currency.
This grid contains as many lines as fiscal years over which the asset depreciation takes place (however it can be limited to the number of fiscal years to calculate specified in the Context).
Depreciation reintegration
- Book vs tax balance FY start: this field displays the reintegration balance at the start of the fiscal year.
- Reinstatement: this field displays the amount of the FY depreciation reintegration.
If it is positive, this amount corresponds to a reintegration provision.
If it is negative, this amount corresponds to a reintegration reversal.
- - Book vs tax balance FY end: this field contains the reintegration balance at the end of the fiscal year.
Book vs tax
- Book vs tax balance FY start: this field contains the book vs tax balance at the start of the fiscal year.
- Book vs tax provision: this field contains the book vs tax provision amount for the fiscal year.
- Book vs tax balance FY reversal: this field contains the book vs tax reversal amount for the fiscal year.
On the issue fiscal year, this amount also takes into account the reversal due to the issue.
- Book vs tax balance FY end: this field contains the book vs tax balance at the end of the fiscal year.
The table data can be displayed as a chart by clicking the icon in the top left corner of the table (see documentation about the Table management).
Calculation of the depreciation reintegration and the book vs tax depreciation
Common simple cases:
Case 1
If
FY fiscal charge >= FY accounting charge
and
FY end fiscal depreciation total >= FY end accounting depreciation total
then
Book vs tax balance FY provision = (FY fiscal charge - FY accounting charge)
Case 2
If
FY accounting charge > FY fiscal charge
and
FY end fiscal depreciation total >= FY end accounting depreciation total
then
Book vs tax reversal = (FY accounting charge - FY fiscal charge)
Case 3
If
FY accounting charge > FY fiscal charge
and
FY end accounting depreciation total > FY end fiscal depreciation total
then
Depreciation to reintegrate = (FY accounting charge - FY fiscal charge)
Case 4
If
FY fiscal charge >= FY accounting charge
and
FY end accounting depreciation total > FY end fiscal depreciation total
then
Reintegrated depreciation reversal = (FY fiscal charge - FY accounting charge)
Other cases,
more specifically after changing the depreciation parameters or depreciation in non-financial units
Case 3 bis
If
FY accounting charge > FY fiscal charge
and
FY end accounting depreciation total > FY end fiscal depreciation total
and
Non-null Book vs tax balance
then
Book vs tax reversal = Book vs tax balance
Depreciation to reintegrate = (FY accounting charge - FY fiscal charge) - Book vs tax balance
Case 1 bis
If
FY fiscal charge >= FY accounting charge
and
FY end fiscal depreciation total >= FY end accounting depreciation total
and
Non-null balance of reintegrated depreciations
then
Reintegrated depreciation reversal = Balance of reintegrated depreciations
Book vs tax provision = (FY fiscal charge - FY accounting charge) - Balance of reintegrated depreciations
Summary table of the book vs tax calculation and the fiscal reintegration
|
|
Fiscal yearstart balance |
Fiscal |
Fiscal year total |
Book vs tax |
Reintegration |
|||||
|
CASE |
Exceptional |
Reintegration |
Accounting |
Fiscal plan |
Accounting |
Fiscal plan |
Provision |
Reversal |
Provision |
Reversal |
|
1 |
|
=0 |
>= |
|
>= |
(2)-(1) |
|
|
|
|
|
2 |
|
> |
|
|
>= |
|
(1)-(2) |
|
||
|
3 |
=0 |
|
> |
|
> |
|
|
|
(1)-(2) |
|
|
4 |
|
|
|
>= |
> |
|
|
|
|
(2)-(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
3 bis |
<>0 |
|
> |
|
> |
|
|
(4) |
(1)-(2)-(4) |
|
|
1 bis |
|
<>0 |
|
>= |
|
>= |
(2)-(1)-(3) |
|
(3) |
|
Calculation examples
Example 1
Asset with a value of 100,000.
Accounting depreciation plan: linear 4 years (actual duration of use)
Fiscal depreciation plan: linear 5 years (use duration)
|
Year |
Accounting charge |
Fiscal |
Depreciation to reintegrate |
Book vs tax depreciation |
Deducted depreciation total |
|
|
(1) |
|
(2) |
(3) |
(1) + (2) + (3) |
|
1 |
25,000.00 |
20,000.00 |
- 5,000.00 |
|
20,000.00 |
|
2 |
25,000.00 |
20,000.00 |
- 5,000.00 |
|
20,000.00 |
|
3 |
25,000.00 |
20,000.00 |
- 5,000.00 |
|
20,000.00 |
|
4 |
25,000.00 |
20,000.00 |
- 5,000.00 |
|
20,000.00 |
|
5 |
|
20,000.00 |
+ 20,000.00 |
|
20,000.00 |
|
Total |
100,000.00 |
100,000.00 |
0.00 |
0.00 |
100,000.00 |
Example 2
Asset for a value of 100,000 with a specified residual value of 20,000
Accounting depreciation plan: linear 4 years (actual duration of use)
Fiscal depreciation plan: linear 5 years (use duration)
|
Year |
Accounting charge |
Fiscal charge |
Depreciation to reintegrate |
Book vs tax depreciation |
Deducted depreciation total |
|
|
(1) |
|
(2) |
(3) |
(1) + (2) + (3) |
|
1 |
20,000.00 |
20,000.00 |
|
|
20,000.00 |
|
2 |
20,000.00 |
20,000.00 |
|
|
20,000.00 |
|
3 |
20,000.00 |
20,000.00 |
|
|
20,000.00 |
|
4 |
20,000.00 |
20,000.00 |
|
|
20,000.00 |
|
5 |
|
|
|
|
|
|
Total |
80,000.00 |
80,000.00 |
0.00 |
0.00 |
80,000.00 |
Notes:
- The asset disposal is planned for the end of year 4. The residual value of 20,000 is justified by this disposal at the end of asset usage.
- The application of this residual value in the plan brings about an accounting charge (80,000 / 4) equal to the fiscal charge (100,000 / 5), despite the different depreciation durations.
Example 3
Asset for a value of 100,000 with a specified residual value of 20,000
Accounting depreciation plan: depending on non-financial units over a 7-year period (real usage duration)
Fiscal depreciation plan: linear 5 years (use duration)
|
Year |
Accounting charge |
Fiscal charge |
Depreciation to reintegrate |
Book vs tax depreciation |
Deducted depreciation total |
|
|
(1) |
|
(2) |
(3) |
(1) + (2) + (3) |
|
1 |
20,900.00 |
20,000.00 |
- 900.00 * |
|
20,000.00 |
|
2 |
20,900.00 |
20,000.00 |
- 900.00 * |
|
20,000.00 |
|
3 |
19,000.00 |
20,000.00 |
+ 1,000.00 ** |
0.00 |
20,000.00 |
|
4 |
8,150.00 |
20,000.00 |
+ 800,00 ** |
+ 11,050.00 |
20,000.00 |
|
5 |
8,000.00 |
20,000.00 |
|
+ 12,000.00 |
20,000.00 |
|
6 |
9,500.00 |
0.00 |
|
- 9,500.00 |
|
|
7 |
8,550.00 |
0.00 |
|
- 8,550.00 |
|
|
Total |
95,000.00 |
100,000.00 |
0.00 |
5,000.00 |
100,000.00 |
Notes:
* Years 1 and 2: the accounting depreciation surplus (20,900 - 20,000 = 900) must be reintegrated since it is not tax-deductible.
** Years 3 and 4: in order to keep the deductibility of the accounting depreciation surplus reintegrated in years 1 and 2, it is posted for years 3 and 4, and deducted from the book vs tax depreciation.
Standard reports
The following reports related to the depreciation reintegration and to the book vs tax depreciation, are available in standard mode in the reference folder:
- DEPSITUREINT: Depreciation reintegration
- DEPSITUDERO: Book vs tax situation