Examples of Temporary Differences

31

31

• Deferred tax liabilities and assets still present as well as temporary differences.

• Examples of temporary differences (see text also).

  • Revenues or gains that are taxable after they are reported in the financial statements (F/S).
    • Example: Gross profit on installment sales reported on the financial statements when the sale occurs, later on the tax return when the proceeds are received.
    • Question: Which originates here? Future taxable amount? Future deductible amount? Liability? Asset?

Previous slide

Next slide

Back to first slide

View graphic version