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Saturday, April 24, 2010

Temporary differences

Temporary differences are differences between the carrying amount of an asset or liability in the statement of financial position and its tax base. Temporary differences may be either:

  1. taxable temporary differences; or
  2. deductible temporary differences.

Temporary differences are specifically discussed in IAS 12 Income Taxes.

Source: Glossary of Terms of IFRSs as at 31 December 2008.