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Answer Posted / h.r. sreepada bhagi
Deferred Revenue Expenditures are those revenue expenditures
which are incurred during a financial period, but the
benefit of which is expected over future financial periods.
Generally the amount will be substantial and charging the
full amount to that year's Profit & Loss A/c will distort
the operating result of that financial period. A part of the
expenditure is written off to the Profit & Loss A/c over
more than one financial period during which the benefit is
expected.
This expenditure will be huge but does not result in
creation of any tangible asset when incurred. For example,
initial Advertisement or Branding expenditure.
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