Interested to Buy Any Domain ? << Click Here >> for more details...
What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?
- 26 Answers
- 66233 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
service tax form no ? What is CC Limit ? What is branch accounts?
how Mis reports are used?n why it is used ? explain
Define Bill of Exchange
Hello every one i'm going to interview for as an account profile company is construction works so plz guys help me about furthering interview question
What is the use of final account?
what are responsibilities of an accountant in a company?
What are the different payrolls? how we calculate the exmployee payroll? how we calculate the employee salaries details?
Calculate the total Depreciation for four or five Years so practice some problems on depreciation?
Can anyone plz. tell me where can i get the proforma application for DAO.I have tried all the links but i couldn't find any application proforma in the notifications.
reason for difference in Balance sheet (Asset side & Liabilites side)
Comments Elements in accounting
what amounts to appropriation of profits? When provision for taxation does not amount to appropriation of profits?
If DEBT/EQUITY ratio 2:1, is to good or bad for a company? how...??? can u explain it...???
What is the process of VAT & CST Registration?
what is automatic payment in sap fico
