Deferred revenue expenditure: Is the cost incurred in the current

Deferred revenue expenditure is the cost incurred in the current accounting period but its advantages are realized in future accounting periods. This expense may be deducted over a number of years or in the same fiscal year. Deferred revenue expenditure means the expenditure, the benefit of which is accrued in more than one accounting period. In other words, it means that the expense that has been incurred at once, its benefit shall be received in the coming years as well. Deferred revenue expenditure is a nuanced concept in accounting that straddles the line between conventional expenses and capital expenditures. It represents a payment for goods or services received that provides benefits over multiple accounting periods. Deferred Revenue Expenditure It will be easier to understand the meaning of deferred revenue expenditure, if you know the word deferred, which means “Holding something back for a later time”. Deferred Revenue Expenditure is an expenditure which is revenue in nature and incurred during an accounting period, but its benefits are to be derived over a number of following accounting periods. These expenses are unusually large in amount and, essentially, the benefits are not consumed within ...