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Deferred Revenue Expenditure
Last Updated On: 31-Oct-2021Posted On: 31-Oct-2021
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[i][size= 15.0pt; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; color: #212121]Deferred revenue expenditure is an expenditure which is incurred in the present accounting period but its benefits are incurred in the following or the future accounting periods. This expenditure might be written off in the same financial year or over a period of a few years.[/size][/i]
[size= 15.0pt; font-family: 'Segoe UI','sans-serif'; mso-fareast-font-family: 'Times New Roman'; color: #212121]Let us take an example. In the case of a startup company, the firm invests heavily in marketing and advertisement in the beginning. They do this to capture some position in the market and amongst competitors. This expense, done in the beginning, reaps the benefits over several years.[/size]
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