Deductible temporary difference

A deductible temporary difference is a temporary difference that will yield amounts that can be deducted in the future when determining taxable profit or loss. A temporary difference is the difference between the carrying amount of an asset or liability in the balance sheet and its tax base. A deferred tax asset is recognized for all deductible temporary differences if it is probable that a taxable profit will be available that will be offset against the deductible differences.

Related Courses

Accounting for Income Taxes