Temporary Differences (v3120.00)

This account measures the differences between book and taxable income that reverses in future periods. In historical periods, enter a rate. Strategic Finance divides Deferred Provision for Income Taxes (v1660.00) in a given historical period by this rate to determine the amount of temporary differences that gave rise to the deferred provision. Generally, is the statutory tax rate in effect in that period. It is important to know temporary differences in historical periods since it is a key component of Taxable Income (v3140.00). In forecast periods, this is calculated.