deffered expenditure

This query is : Resolved 

20 June 2009 can anyone clarify me whether advertisement is deffered expenditure or not. if not then what type of expenditure constitutes deferred exp.

20 June 2009 Dear Vinith
Deferred Expences are those which r incurred in current year but the benefit/gain of which is spread over a no. of year
e.g Technical Know how, premium on redemption of debenture etc.

if Advertisment exps. incurred a huge amount then u can spread the expences over a projected no. of year

20 June 2009 Dear Vinith
Deferred exp. is one which is incurred in one year but it gives advantages of enduring nature i.e. for no. of years.

advertisement expenditure is one of them.


20 June 2009 No.
Advertisement is not a deferred revenue expenditure.
After AS-26 becomimg mandatory from 1.4.2004, there is no concept such as deferred expenditure.
Either the outflow of resources is to be classified as intangible asset or charged to income statement.

20 June 2009 Deferred expense refers to an item that will initially be recorded as an asset but is expected to become an expense over time and/or through the normal operations of the business. Deferred expenses are sometimes called prepaid expenses, and it is through the use of this term that I believe it makes it easier to understand why it is initially an asset but is later transferred to an expense item.
if Advertisment exps. incurred a huge amount then u can spread the expences over a projected no. of year ,sit can be is defered expenditure



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