Originating Timing Difference

An originating timing difference is a timing-based book-versus-tax difference that begins in the current period and is expected to reverse later.

It is one way of describing the beginning of a deferred-tax-causing difference.

Why the term matters

This label is useful when distinguishing:

• differences that originate now
• differences that are merely reversing from earlier periods

That distinction helps explain how deferred tax balances are built up and later unwound.

Typical examples

• accelerated tax depreciation versus straight-line book depreciation
• accrued expenses recognized now but deductible later
• revenue recognized in different periods under tax and financial reporting rules

Related terms

• Deferred Tax
• Temporary Difference
• Revenue Recognition