Types of Temporary Differences
	Revenues or gains that are taxable after they are recognized in financial income. Example: Construction Contracts. percentage of completion used for financial reporting, completed contract used for tax purposes.
	Expenses or losses that are deductible after they are recognized in financial income. Example: Accounting for warranty costs. Must accrue them for financial reporting, can't accrue for tax purposes; not deductible until actually incurred.
	Revenues or gains that are taxable before they are recognized in financial income. Example:  Accounting for Rental Income. Must recognize when earned for financial reporting, must recognize when cash is received for tax purposes.
	Expenses or losses that are deductible before they are recognized in financial income. Example: Depreciation. Use of straight-line depreciation for financial reporting, use of accelerated depreciation for tax purposes.
The four above are to be emphasized in class:  The following four will not be emphasized.
	A reduction in the tax basis of depreciable assets because of tax credits.
	ITC accounted for by the deferral method.
	An increase in the tax basis of assets because of indexing whenever the local currency is the functional currency.
	Business combinations