timing difference

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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.
References in periodicals archive ?
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.
Second quarter year on year revenue excluding France was down 8,0%, driven by timing differences in directories distribution as well as some decline for certain directories.
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.
Timing differences 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.
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.