Deferred Revenue Expenditure It will be easier to understand the meaning of deferred revenue expenditure, if you know the word deferred, which means “Holding something back for a later time”. Deferred Revenue Expenditure is an expenditure which is revenue in nature and incurred during an accounting period, but its benefits are to be derived over a number of following accounting periods. These expenses are unusually large in amount and, essentially, the benefits are not consumed within ... Deferred revenue expenditure is a nuanced concept in accounting that straddles the line between conventional expenses and capital expenditures. It represents a payment for goods or services received that provides benefits over multiple accounting periods. Learn everything about deferred revenue and expenses with Flyingcolour. Understand deferred expense meaning, deferred revenue expenditure, and journal entries for accurate accounting and compliance in India. Deferred revenue expenditure refers to the expenditure incurred by an organization that will provide benefits in future periods. Deferred revenue expenditures are revenue in nature; however, benefits that can be derived from them will last for many years.
