Deferred revenue expenditure is also called as capitalized expenditure. The benefits of some revenue expenditures may be consumed for several years which are called deferred revenue expenditure. Only a part of it is considered as revenue expenditure and debited to profit and loss account. The remaining amount is put as an asset in the balance sheet.
Some Deferred Revenue Expenditure are as follows:
- Preliminary expenses.
- Share underwriting commission.
- Discount on issue of shares and debentures.
- Cost of heavy advertisement.