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What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?

Answers were Sorted based on User's Feedback



What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?..

Answer / shyamsunder reddy,g

It is basically a form of revenue expenditure but the
benefit from it continues more than a year

Is This Answer Correct ?    134 Yes 14 No

What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?..

Answer / suresh

Deffered Revenue expenditure is the revenue nature but
which benfit is extend more than one year.
Ex:Advertisement given for introducing a new product.
if exp. is huge it can be written of 2 to 3years

Is This Answer Correct ?    92 Yes 18 No

What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?..

Answer / shyamsunder reddy,g

It is basically a form of revenue expenditure but the
benefit from it continues more than a year

Ex:Advertisement given for introducing a new product.
if exp. is huge it can be written of 2 to 3years

Is This Answer Correct ?    40 Yes 13 No

What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?..

Answer / disha lakahnpal

Sometimes certain revenue exp. may be unusually heavy and
its benefits are likely to be available for more than one
year. In such a situation, it is considred appropriate to
spread an exp. over a number of accounting years.

eg: Heavy Advt to introdure a new a product or to explore a
new market

Is This Answer Correct ?    35 Yes 13 No

What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?..

Answer / daya

every body is telling what is deferred revenue exp but the
question is what is the treatment.


the treatment would be- it should be written off over the
expected benifit,say if the expenditure is 5000 and we can
write it off over 5yrs by charging to p&l account anD the
balance is shown under the head MISCELEANIOUS EXPENDITURE
on the assets ide of B/S

Is This Answer Correct ?    17 Yes 0 No

What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?..

Answer / deepa juthani

Deffered revenue expenditure should be treated as
expenditure of the period in which the same has been
incurred althouth the benefit form it is likely to accrtue
in the future years

Is This Answer Correct ?    20 Yes 5 No

What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?..

Answer / shanti

THE EXPENDITURE WHICH IS INCURRED DURING THIS ACCOUNTING
PERIOD .BUT THIS IS APPLICABLE FOR FURTHER ACCOUNTING
PERIODS ALSO.
EX:Heavy expenditure on advertisement

Is This Answer Correct ?    24 Yes 10 No

What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?..

Answer / vijay

where the expenditure is revenue in nature but the benefits
which the business unit is getting as long period then it is
known as Deferred Revenue Expenditure

Is This Answer Correct ?    19 Yes 6 No

What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?..

Answer / sridharan.v

An Expenditure the benefit of which is Received for more
than one financial year. Eg: Heavy Advertisement
Expenditure.(Vodafone)

Is This Answer Correct ?    19 Yes 7 No

What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?..

Answer / rambabu

deferred revenue one type revenue expenditure firm can be
in spent in present it will be get the future is called
deferred revenue ex:preliminary exp

Is This Answer Correct ?    17 Yes 8 No

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