An accounting method under which Net Income includes charges or credits equal to the decreases or increases in current taxes on income, arising from the use of liberalized depreciation or accelerated amortization for tax purposes instead of the straight-line method. The contra entries for such charges to Net Income are suspended in Balance Sheet accounts. In future years, there is a feedback of these suspended amounts to Net Income when increases in the then current taxes on income occur because liberalized depreciation or accelerated amortization was used for tax purposes in prior years. See DEPRECIATION, FLOW-THROUGH; RESERVE FOR DEFERRED OR FUTURE INCOME TAXES.

This definition is in context to Natural Gas. See more contextual defintions for Depreciation, Normalized.