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Expense related to next year

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Atharv Sankliya

1359 Points Posted on 27 May 2023

In which year (current or next accounting year) the expense related to the sale of next year is recorded
Like if a company advertise for its products which is to be launched next year?

Replies (2)

Quick Summary

This discussion clarifies when to record expenses that relate to the next accounting year. It explains that advertising costs for products launching next year are typically considered deferred revenue expenses. These are then expensed over the period the company expects to benefit from them, though it's noted that not all advertising expenses are deferred.

Komal Barapatre

210 Points Posted on 27 May 2023

Advertisement expenses is a deffered revenue expenses and expensed over a period of 5 years or years which company assume that the company will receive benefits from such expenses.