Taxable Temporary Difference
/ˈtæk.sə.bəl ˈtɛmp.əˌrɛr.i ˈdɪf.ər.əns/
Definitions
- (n.) An accounting concept denoting the difference between the carrying amount of an asset or liability in the balance sheet and its tax base that will result in taxable amounts in future periods.
The company recognized a taxable temporary difference that will lead to deferred tax liabilities.
Forms
- taxable temporary difference
- taxable temporary differences
Related terms
See also
Commentary
Taxable temporary differences commonly underpin deferred tax liabilities in financial reporting, necessitating careful distinction from deductible temporary differences.
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