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what is deferred revenue expenditure

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what is deferred revenue expenditure

Posted by Nancy Garg 5 years, 10 months ago

CBSE > Class 11 > Accountancy

1 answers

Baisakhi Pattnaik 5 years, 10 months ago

A heavy expenditure of revenue nature incurred, having the effect of generating income for a number of years is known as Deferred revenue expenditure. Such expenditures are also known as capitalised revenue expenditures because it is temporarily capitalised and spread equally over the number of years for which the benefit is anticipated. For example: Heavy advertisement expenditure incurred to launch a new product or venture. Research and development expenses. Discount on issue of shares and Debentures. Expenses on issue of shares and debentures. Exceptional repair of machinery.

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