Interperiod equity may be demonstrated by showing whether current year revenue is sufficient to pay for current year services and whether:

Question

Quizplus · Accepted Answer

Interperiod equity means ensuring that the burden of current year services should not fall entirely on future taxpayers, and in order to achieve this, current year revenue should be sufficient to pay for current year services. Therefore, if current year revenue is not sufficient, future taxpayers will be required to assume the burden for services previously provided, indicating a lack of interperiod equity.

Interperiod Equity May Be Demonstrated by Showing Whether Current Year