Difference b/w differed revenue exp. & contingent liability

differed revenue expenditure is a huge expenditure incurred whoes benefit will come in more than one year. such type of expenditure will be apportioned or differed over no. of years during which the benefit will come. 

contingent liability is a type of liability whoes occurence will be dependent on some other contingent event which may occure or may not occure. example is there is a court case against one company the result of wwhich may result a penality on the company. here the panality is contingent liabilty whose occurence is dipending on the judgement. 

the example for differed revenue exp is advertisement exp.

After AS 26 came in place, there is no concept of deferred revenue expenditure under Indian GAAP except the cases where AS 26 does not applies. Before AS 26 regime, corporates used to defer expenditures like Advertisement expenses, pre-operative expenses etc. However it does not satisy the definition of Intangible Assets and hence it cannot be deferred anymore.

The practice was being widely used before AS 26.

thq Yogesh and rama krishna