Deferred revenue expenditure: Means the expenditure

Deferred revenue expenditure means the expenditure, the benefit of which is accrued in more than one accounting period. In other words, it means that the expense that has been incurred at once, its benefit shall be received in the coming years as well. Deferred Revenue Expenditure is a term used in accounting to describe expenses that have been incurred but not yet recognized as expenses in the current accounting period. These expenses are recorded as assets on the balance sheet until they are recognized as expenses in future accounting periods. Deferred revenue expenditure refers to expenses that provide benefits beyond the current accounting year. However, this expenditure does not result in the acquisition of a permanent asset. For instance, introducing a new product to the market requires significant advertising cost. The business reaps long-term benefits from such investments. Deferred revenue expenditure is the cost incurred in the current accounting period but its advantages are realized in future accounting periods. This expense may be deducted over a number of years or in the same fiscal year.