Deferred revenue expenses

Expenditure whihc is initially of reveneu in nature but if future economic benefits are expected to flow from such expendituer , then such expenditure needs to be deferred.

Such deferred revenue exp shud be amortized on a prudent basis depending upon the  period of the economic benefits that are xpected to flow to teh enterprize from such exp. Normally the expenditure shud be amortized within a period of 5 years.

However subsequently if it is found that no economic benefits are expected to flow from such exp then the balance remaining shud be immediately w/o to P&L.

Yes, i agreed with your views, but my worry about AS 26, there it state that expenditure provides future economic benefits, but no tangible asset or other asset should recognized as expenses when it was incurred.      So can you tell me, is there  any AS or COMPANY LAW provision describing about deferred reveune expenditure....???

Now there is no concept of defered revenue expenditure. It has to be charged to profit &Loss a/c in the year of incurrence.