APB #11

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11

What is going on here generally?

• There are amounts that will cause the future taxable income to be greater than the future book income.

  • Logically, you will owe taxes in the future due to this type of difference--a future taxable amount (FTA).
  • In our illustration the use of accelerated depreciation will initially give rise to a FTA.

• There are also amounts that will cause future taxable income to be less than the future book income.

  • Logically, you will have your tax payable reduced by this type of difference--a future deductible difference (FDA).

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