IFRS Notes

Temporary differences


Temporary differences = (1) + (2)
(1) Timing differences
(2) Other temporary differences

Timing differences
Differences between (1) and (2)
that occur in one period and
reverse in other periods

(1) accounting profit
(2) taxable profit

Examples of timing differences

(1) interest revenue recognised on
accrual basis for accounting
cash basis for tax

(2) different depreciation methods
for tax and accounting purposes

Examples of other temporary differences

(1) in business combinations, assets and liabilities
recognised at fair value for accounting,
not adjusted for tax purposes

(2) assets revalued for accounting,
not adjusted for tax purposes