GENERAL KNOWLEDGE

Detailed explanation-1: -Any expenditure which gives the benefits to the business for a long time are termed as deferred revenue expenditure.

Detailed explanation-2: -Rent payments received in advance or annual subscription payments received at the beginning of the year are common examples of deferred revenue. Deferred expenses, similar to prepaid expenses, refer to expenses that have been paid but not yet incurred by the business.

Detailed explanation-3: -Deferred revenue expenditure is an expenditure that is incurred in the current 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 few years.

Detailed explanation-4: -ITAT Ahmedabad held that advertisement expenses incurred at the time of installation of additional machinery in the existing line of business resulted in any enduring benefit is revenue expenditure. Further, advertisement expenses incurred to create brand image is revenue expenditure.