Question
There are certain expenses that may be in the nature of
revenue but their benefit may not be consumed in the year in which such expenditure has been incurred; rather the benefit may extend over a number of years are termed asSolution
Deferred revenue expenditure refers to certain expenses that are revenue in nature, meaning they are related to the current operating expenses of a business. However, the benefit of these expenses is not consumed entirely in the year in which they are incurred, and their benefits extend over a number of years. These expenses are treated as deferred and are amortized (expensed) over the periods during which they provide benefits.
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