| Liquid Engines GPM
With FIN 48, the assessment of tax positions is a continual process. With each quarterly financial reporting cycle, decisions regarding the technical merits and proper measurements must be reevaluated, thus requiring a controlled environment to capture and track ongoing analysis, approvals, and related documentation supporting decisions made throughout the process.
Liquid Engines GPM addresses these requirements by providing a secure, controlled framework for identifying, evaluating, measuring, and documenting tax positions — across entities, jurisdictions, and periods — in accordance with FIN 48 and other standards.
With GPM, you have the tools and insight you need to:
- Comply with current standards and improve accuracy and consistency in financial statement reporting from year to year.
- Reduce risks commonly associated with complex tax judgment
- Increase the efficiency and effectiveness of the tax reserve process by building a best-practices model for decision making around tax positions
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Unlike spreadsheet-based systems or workflow tools, GPM offers an integrated application environment that is specifically designed to help tax departments manage, measure, and report on global tax positions and their impact on the company’s financial statements.
Facilitating multiple layers of decision making, reducing manual effort, supporting your internal controls, and complementing your existing tax provision processes, GPM can help you: Integrated application environment: Designed to enhance existing provision processes, GPM provides a secure, controlled framework that enables tax departments to create a best-practices model for identifying, evaluating, measuring, and documenting tax positions — across entities, jurisdictions, and periods — to comply with FIN 48, SOX 404, and other accounting standards. Centralized tracking of tax position data and supporting documents: GPM helps improve the efficiency and accuracy of the tax reserves process by centrally tracking detailed information and related documentation about new tax positions and subsequent changes. In addition, drill-down capabilities instantly expose detailed decision history (e.g., judgments, timing, authority, etc.). Single view of global tax positions: Providing embedded workflow with an integrated view of your global tax positions, GPM reduces manual intervention and helps ensure completeness in evaluation, adherence to company standards and controls, and consistency in decision making.
Built-in FIN 48 business logic: GPM facilitates the FIN 48 two-step recognition standard, tracks and calculates cumulative probability where applicable, and enables the application of company-specific selection (e.g., materiality) guidelines throughout the identification, review, and approval process.
Comprehensive accrual calculations: Calculate related interest and penalties and foreign exchange impact; and automatically roll forward balances from period to period.
For interest rate calculations, GPM delivers the power and sophistication of Decision Modeling, Inc. (DMI)'s interest calculator into the hands of tax professionals within GPM's easy-to-use application environment. GPM customers benefit from built-in, multi-year, multi-jurisdictional rate tables and calculations that eliminate the need to rely on third-party tools to precisly compute often highly-complex exposure amounts by position, unit of account, and jurisdiction.
Updated quarterly and user modifiable, these embedded tables and calculations ensure greater precision and accelerate complex, multi-year calculations. Automated balance sheet classification: Define proper balance sheet classification based on the nature and type of tax positions. Automatically calculate exposure amounts with integration to STx and ITx: Link GPM with Liquid Engines STx or ITx and leverage prebuilt models to quickly and easily analyze complex tax position scenarios, iteratively model changes, and immediately see the propagation of the changes’ impact across all relevant tax attributes, entities, jurisdictions, and years.
Audit trail of changes and decisions: Drive new levels of control and auditability by centrally tracking all related documents and providing a detailed audit trail of all impacts and the resulting analysis and decisions for each tax position.
Exception reporting: With the click of a mouse, instantly surface changes in your tax positions — across regions and reporting units — using exception-based reporting.
Flexible reporting meets internal reporting and external disclosure requirements: Putting critical tax position data at your fingertips, GPM provides a suite of comprehensive reports to help manage the impact of changes in positions across periods and jurisdictions, satisfy financial and tax audit requests, as well as meet internal management reporting and external disclosure requirements.  top
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