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What is the treatment for 'DEFERRED REVENUE EXPENDITURE'?
- 26 Answers
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- Accenture, Capital IQ, Genpact, I also Faced
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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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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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