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Deferred revenue shall be treated in Financial Statement as Liability
Deferred Expenses are expenses that benefit more than one financial period and are classified in the balance sheet under Non-current Assets and amortized using straight line basis over the estimated period of benefit.
example; deferred agriculture expenses for the cost of processing the land needed to grow crops.
As per the matching concept of accountung, the expenses should be booked against it's respective income. Evenif some expenses which is revenue in nature will not take in to income statement as it's benefits spread over of period time. So the expenses should be written off in p&L over that period of time. until it's fully written off, it will part of prepaid expenses.
Eg, Advertisement
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