Temporary differences result when the recognition of deductions for tax and accounting standards differ in their timing. The result is a gap between tax expense computed using income before tax and current tax payable computed using taxable income. This gap is known as deferred tax.
Temporary discrepancies arise from differing recognition times for tax and accounting standard deductions, leading to a gap between the tax expense calculated based on pre-tax income and the current tax payable based on taxable income. This gap is referred to as deferred tax.