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Chapter 5 — Valuation Allowances

5.8 Examples Illustrating the Determination of the Pattern of Reversals of Temporary Differences

5.8 Examples Illustrating the Determination of the Pattern of Reversals of Temporary Differences

The following examples describe several types of temporary differences and provide some common methods (i.e., for illustrative purposes only) for determining the pattern of their reversal. Other methods may also be acceptable if they are consistent with the guidance in ASC 740-10-55 on determining reversal patterns.