Temporary differences that are cumulatively "favorable" are defined as taxable temporary differences.

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Taxable temporary differences are temporary differences that will result in taxable amounts in future periods when the related asset is recovered or liability is settled. If these temporary differences are cumulatively "favorable," it means that the taxable amounts will exceed the deductible amounts, resulting in higher taxable income in the future.

Temporary Differences That Are Cumulatively "Favorable" Are Defined as Taxable