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. 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. Deferred revenue expenditure means the expenditure, the benefit of which is accrued in more than one accounting period. In other words, it means that the expense that has been incurred at once, its benefit shall be received in the coming years as well. Deferred Revenue Expenditure is a term used in accounting to describe expenses that have been incurred but not yet recognized as expenses in the current accounting period. These expenses are recorded as assets on the balance sheet until they are recognized as expenses in future accounting periods.
