Deffered Revenue Expenses

IPCC 698 views 2 replies

whaty do you mean by deffered revenue expense?

plz explain with example.

reply soon.

thanks in advance.

regards

Hardik Dave

Replies (2)

Deferred Revenue Expenses are those which are incurred in an accounting period and they do not create any assets but their benefit is spread in more than one accounting period Ex. Advertisement Cost is one such example, we incur expense of advt. in one accounting period, the benefit of which will accrue in that/subsequent periods through its sales like if we advertise for sale of a product.

Originally posted by : Krishna

Deferred Revenue Expenses are those which are incurred in an accounting period and they do not create any assets but their benefit is spread in more than one accounting period Ex. Advertisement Cost is one such example, we incur expense of advt. in one accounting period, the benefit of which will accrue in that/subsequent periods through its sales like if we advertise for sale of a product.
 

agreed .......

but the same in no longer relevent ...... now full amount should be charged to P & L in the same year


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register