Question

Permanent differences include items that appear in the Federal income tax return as income or deduction and in the GAAP financial statements as revenue or expense but in different reporting periods.

True or False

Answer 1

Answer: False

Explanation:

Answer 2

Answer:

False

Explanation:

The reason is that permanent difference doesn't gets eliminated over time. This means that the companies will have to account for for the changes under the International accounting standard IAS 12 Taxes. The defination written is of temporary differences.