Can someone answer this in two hundred words, please? Thank you!

One of the main temporary differences between financial accounting reporting principles and tax reporting rules that results in deferred tax consequences is related to the revenue recognition/matching principles leading to different recognition outcomes than those prescribed by the tax rules. So, understanding accruals and deferrals is absolutely crucial in this context. The other temporary differences that can lead to deferred tax assets and liabilities are depreciation differences (these are deferred expenses, but they are deferred differently under tax rules) and tax loss carryforwards (which are different because losses are not carried forward to next period's income statement under financial accounting).

The most recent IRS tax reform obviously reduces taxes paid by businesses, but how do you think it impacts financial reporting under GAAP? One thing to consider is that deferred tax balance sheet amounts are calculated using the expected tax rates from the periods in which the differences will reverse in the future.