Measures taxes owed in future periods due to timing differences. These events occurred in the current period but generate future tax liabilities (or assets). See (v5070.00) Shareholder Value (PV) .
One temporary difference results from accelerated depreciation schedules. Greater depreciation early in the life of an asset results in tax savings today (as compared to straight-line depreciation), but savings are offset in later years when book depreciation is greater than tax depreciation.
The default forecast method is as a Percent of Temporary Differences (v3120.00).
Deferred Provision for Income Taxes also can be calculated as the net change in deferred taxes, using the Freeform formula:
(v2770.01) Incr. in Deferred Income Taxes
+ (v2580.01) Incr. in Current Deferred Tax Liability
- (v2380.01) Incr. in Deferred Tax Asset
- (v2080.01) Incr. in Current Deferred Tax Asset
= (v1660.00) Deferred Provision for Income Taxes