Temporary differences result in future taxable or deductible amounts when the related asset or liability is recovered or settled.Some differences, though, are not temporary.

• What events create permanent differences?
• What effect do these have on the determination of income taxes payable?
• What effect do these have on the determination of deferred income taxes?
• What are three examples of differences with no deferred tax consequences?
• How are deferred tax assets and deferred tax liabilities reported in a classified balance sheet?