Interested to Buy Any Domain ? << Click Here >> for more details...
What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?
- 26 Answers
- 65236 Views
- Accenture, Capital IQ, Genpact, I also Faced
- E-Mail Answers
Answer Posted / sreepad
Yes, Deferred Revenue expenditure is an expenditure which gives benefits for more than one year. So, we have to proportionate the expense to several years.
Example : Sachin's Advertisement contract for Adidas for 4yrs is 20 crores, for which he will participate in all promotional events for the firm.
the deferred period will be 4 years. 5crores for each year if we proportionate equally.
But, I have one question - how can we define the benefits for each year?
Do we proportionate the benefit as per the revenue generated by the expenditure or do we have any set of rules/calculation methods/theories to define this?
The proportionate expense is taken in the P&L account for the first year and where will we show the remaining expense?
what are the Journal entries?
People please share your knowledge & thoughts.
| Is This Answer Correct ? | 3 Yes | 0 No |
Post New Answer View All Answers
EXPAND_________SCM
how can make configration related with electronic bank statment and how can i upload bank statment to system
Expand SCERT
what are Equity shares,Preference shares,Bonus shares,Bond,Debentures,Dividend?
What is meant by consignment
what's accounts payable
Short answer on Amalgamation
what are the certificates needed at the time of SBI clerical interview?
What goals do you have in your career
i have completed my MBA with finace background. am intrested to learn oracle finace.can you suggest me which are good instittues in hyderabad.at area wise.
ACCOUNTING STANDARDS ISSUED BY INSTITUE OF CHARTERED ACCOUNTANCY INDIA FOR PREPARING FUND FLOW STATEMENT
what are the questions commomly asked in reuter's interview.?
Queries for Big4 Articleship : Whether son of CA in practice effects chances.
what type of a/c these accounts are are tey real, nominal or personal (1)realisation a/c (2)new company a/c(3)equity share holders a/c
Hi guys, If anyone have gone through the CAPITAL IQ-Junior Research Associate interview then plz let me know about its pattern..and if anyone hav its placement papers or any other information then plz post to me at arshadbasha_mba@rediffmail.com
