Deferred revenvue Expanditure

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Devaraja H.P (Querist)

27 March 2010 Can any one clearly expline that what is the meaning of Deferred revenue Expenditure. Please explin me with some examples.

MK GUPTA (Chartered Accountant

MK GUPTA (Chartered Accountant (Expert)

27 March 2010 Differed revenue expenditure is the exp which is incurred in the currunt financial years, but the benefits of the same are expected to accrue to the coming years also. e.g. Advertisement exp, if it is incurred in financial year 209-10, but its benefits are expected to accrue till the financial year 2012-2013. Then the exp would be differed for 3 more years

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

28 March 2010 Benefit of an expenditure is to be received forthcoming years also the particular expenditure is called deffered expenditure. good examples as Mr.Gupta mentioned Advertisement expenses.the benefit of the advertisement is received more than one year so it is called deffered revenue expenditure

CMA Arif Farooqui

CMA Arif Farooqui (Expert)

30 March 2010 agreed with Mr Gupta.
Adv. is best exemple of DRE

shakuntala chhangani

shakuntala chhangani (Expert)

01 April 2010 Hi, there is a very thin line of distinction between revenue exp and deferred revenue exp. deferred revenue exp. seem to be revenue exp. in the first instance.however its benefits will extend beyond one year against revenue exp. where benefits get exhausted in a particular year itself.
Regards, CA Shakuntala Chhangani

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