The fall is attributed to timing differences
in orders and invoicing, with the company bullish that sales will pick up in the last quarter.
These timing differences
, if related to a specific asset, will cause the asset to have a basis for AMT purposes that differs from that for regular tax purposes.
Additionally, because REITs generally do not reduce dividend payments for fear of damaging shareholder value, they often do not do this when the timing differences
in depreciation and loan principal payments turn around.
On our last cycles, we set materiality numbers for timing differences
A company must still identify and quantify its temporary differences - the differences between book and tax bases of assets and liabilities - rather than timing differences
between pretax income and taxable income.
also created differences between the tax basis of an asset or liability and its financial basis.
133, thereby generating non-cash, short-term timing differences
that overstated earnings in the first quarter of 2006 and understated earnings in the second quarter of 2006.
When companies get desperate to show earnings or reduce losses, sometimes they resort to fraudulent timing differences
to show phony profits.
taxation of an item of income are the only foreign taxes automatically treated as general limitation, but foreign taxes attributable to timing differences
are allocable to separate limitation baskets (as if the U.
TEI recommends that the IRS eliminate adjustments for several additional items that create timing differences
, such as de minimis expensed items.
These changes represent timing differences
and are not economic in substance.
Whether using positive or negative confirmations, auditors must carefully control the mailing of the requests and should investigate any timing differences
or exceptions indicated by respondents.