Deferred income taxes arise when

Question

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Deferred income taxes arise when there is a discrepancy between financial reporting requirements and income tax filing requirements. This means that the income or expense has been recognized for financial accounting purposes, but may not be recognized for tax purposes or may be recognized in a different period for tax purposes, resulting in a timing difference. This timing difference creates a temporary difference, which gives rise to deferred tax assets or liabilities.

Deferred Income Taxes Arise When