Deferred Revenue Expenditure Meaning Definition Example
Deferred Revenue Expenditure Deferred revenue expenditure should be revenue expenditure by nature in the first instance. But its matching with revenue may be deferred considering the benefits to be accrued in future. A thin line of difference exists between deferred revenue expenses and prepaid expenses. The benefits available from prepaid expenses can be precisely estimated but that is not so in case of deferred revenue expenses. For example, insurance premium paid say, for the year ending 30th June, 2015 when the accounting year ends on 31st March, 2015 will be an example of prepaid expense to the extent of premium relating to three months’ period i....