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Timing Difference
(redirected from Timing Differences)

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Timing Difference
In accounting, the amount of time between the point at which an asset or transaction affects a company's finances for reporting purposes and the point at which it affects it for tax purposes. This is especially important in depreciation: tax depreciation and reporting depreciation are sometimes calculated differently.

timing difference
The time difference between the point at which a transaction affects items for financial reporting purposes and the point at which it affects the same items for tax purposes. For example, purchase of a fixed asset depreciated by an accelerated method for tax purposes, but by straight-line for reporting purposes, creates a timing difference for depreciation expense.


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