Misconception · MIS:use-expected-future-tax-rate

Mistaken idea “Use the tax rate expected to pass”

Mistaken reasoning: This mistake substitutes political or management expectations for enacted law.

Updated Aug 21, 2026 Review due Nov 8, 2026

Why this is mistaken

US-GAAP measurement uses enacted rates for expected reversal periods. Track proposals as standards-clock evidence, not booked rates.

Where to watch

When this mistake may appear

  • A proposed rate change is widely expected.
Check your work

Your work may contain this mistake if:

  • Remeasure deferred taxes before enactment.