Misconception · MIS:temporary-means-reverses-next-year

Mistaken idea “A temporary difference must reverse next year”

Mistaken reasoning: This mistake confuses future reversal with current classification.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

Temporary differences may reverse over many periods. Preserve the supported reversal calendar and enacted rates.

Where to watch

When this mistake may appear

  • A difference is called temporary.
Check your work

Your work may contain this mistake if:

  • Force the entire difference into the next annual rate bucket.