Deferred Revenue Expenditure

Definition

A revenue expenditure that is large in amount and whose benefit is expected to extend over more than one accounting period, so it is written off over a few years rather than entirely in the year of incurrence.

Example

"Heavy advertising expenditure of ₹10 Lakhs for a product launch is treated as Deferred Revenue Expenditure and written off at ₹2 Lakhs per year for 5 years."

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