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Deferred Revenue expenditure is that the benefit derived from such expenditure is lasts for one or more accounting periods that is why it is so called.
agreed with all.......................................
Expenditure is of revenue nature but its benefit likely to be derived over a number of years. Such expenditure is called deferred revenue expenditure
Deferred expenditure refers to expenses incurred which do not apply to the current accounting period. Instead, they are debited to a 'Deferred expenditure' account in the non-current assets area of chart of accounts. When they become current, then they are transferred to the profit and loss account as normal.
Deferred revenue expenditure is slightly more complicated. In this case, the value received from the expenditure is not immediate. Buying a training program may add skills to office labor forces over just a few days, but not all effects occur so quickly. Sometimes the benefit is delayed over months or even years. In this case, the business creates a deferred revenue expenditure account to match up the expense with the value received, similar to depreciation accounts but for a different set of activities.
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