FEATURES AND EXAMPLES OF DEFERRED REVENUE EXPENDITURE

Special features:

1. Expenditures for developments,improvement and alterations are revenue expenditures but treated as capital expenditure.
2. These expenditures are not immediately written off in the year of actual expenditure but split over a period of certain years as per the decisions and policies of the management.
3. These expenditures are treated as assets and shown at the assets side of balance sheet.

Examples:

• Advertising suspense
• Preliminary expenses
• Loss on issue of shares
• Cost of issue of shares and debentures.