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Deferred Expenditure

This query is : Resolved 

what is deferred expenditure? with example please...


Deferred expenses are those expenses benefit of which recived in more than 1 year. So same is generally not charged to P&L in a single year. Same is written off(deferred) every year.

A deferred expenditure is a cost which is substantially high that has already been incurred, but which has not yet been fully consumed. The result of such expense will spread out over a period which may extend to the next FY or beyond .The expense is recorded as an asset as deferred expenditure until such time and is debited to the P&L account each year evenly. For example large expenses by way of advertisement may be shown as deferred expenditure in the asset side of Balance Sheet and divided and charged to the P&L account every till the cost is covered and deferred expense exhausted.


Bajaj Finserv

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