Final answer:
The Matching recognition principle requires recording income tax expenses in the same period as the revenues they are related to, ensuring financial performance is accurately reflected.
Step-by-step explanation:
The matching recognition principle requires an adjustment for income tax expenses attributable to the net income earned during the current period. This principle ensures that expenses are recorded in the same period as the revenues they helped generate, providing a more accurate picture of a company's financial performance for that period. For example, if a company earned revenue in the current fiscal year, the matching principle dictates that the income tax expense related to this revenue should also be recorded within the same fiscal year, even if the tax payment will occur in the next period.