What is differed revenue expendature?

Question Posted / vinay kumar. pagidikondala

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What is differed revenue expendature? ..

Answer / vinay kumar. pagidikondala

It is an expenditure which is occurred in an accounting
period but it will be applicable for further more years.

Ex:- Heavy advertisement expendature

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What is differed revenue expendature? ..

Answer / sujit kumar panigrahi

Deffered Revenue Expenditure means any expenses in the
revenue account, which is incurred by any Company, Firm
etc. in their normal course conducting the
business/profession as the case may be, the benefit of such
expenditure would flow in more than one years except the
year of making expenditure.

Hence it would be unfair to charge such expenditure wholly
in the year of incurrance. So it would be fair practice to
deffered the expenditure over the estimated period during
which the benefit are expected to come to the company or
Firm etc as the case may be.

Example: Advertisement Expenditure incurred by a company,
Firm during the initial period of lunching of a product.

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