service in kind) (759. Page 4 Capital expenditure Vs Revenue expenditure CA CPT Course Paper 1 Fundamentals of Accounting Chapter 2 Unit 6 CA. The Revenue Expense relates to the operations of the business … Expenditure. Due to lower expected operational and … Other areas that could be affected include deferred and advanced payments, licensing arrangements, breakage and non-refundable upfront fees. Have a glance at the article, in which we’ve elaborated … 712 103. 2 Introduction 3 For ascertaining the periodical business results, the nature of transactions should be analysed whether they are of capital or revenue nature. Deferred grant /transfers (247 796) Total revenue. I will explain it with an example. Deferred Revenue Expenditure is an expenditure which is revenue in nature and incurred during an accounting period, but its benefits are to be derived in multiple future accounting periods. Books. Search Search. Magazines. Deferred Revenue Expenditure  Deferred Revenue Expenditure is a revenue expenditure which has been incurred during one accounting year which is applicable either wholly or in part to further accounting years. Ex 1: Advertisement Expenditure the benefit of which is likely to be obtained over a period more than one year (E.g.) Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. This is published only for education and information purpose. PepsiCo Pays USD 2 Million to … Deferred Revenue Template Hashdoc. Deferred Tax Rate Template Excel Templates Excel. Close suggestions. Learn more about Scribd Membership. exp) Examples : 1.Heavy research expenditure 2. Unit 4 – Vouching. 29 Classification of Accounting Event Deferred Revenue Expenditure: It is neither a Capital nor Revenue and the benefit of which will be realized for more than a year (Exceeding beyond the Calendar year for the set of books) and does not result in creation of an asset. Deferred revenue expenditure is that expenditure for which payments will be made immediately in the year occurred but wont be accounted full in the books of accounts. June 2019. The subsidy received against a depreciable asset should either be shown as deduction from gross value of the asset to arrive at its book value or treated as deferred income which is recognized in the Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. (i) The cost of an asset Rs.23,000 has been taken as an expense Scribd is the world's largest social reading and publishing site. No public clipboards found for this slide. Energize Learners Before starting chapter – This chapter requires Knowledge of basic accounting terms, accounting principles &Trial Balance. It is a presentation on basic introduction to the subject of Vouching. If you continue browsing the site, you agree to the use of cookies on this website. An income statement for January must include the revenue because it has been earned. Expenditure Deferred revenue expenditure is that expenditure for which payment has been made or a liability incurred but which is carried forward on the presumption that it will be of benefit over a subsequent period or periods. Capital and Revenue Profit = Receipts – Expenses Periodicity concept Matching concept Accrual concept while determining profit / loss made during a particular … Deferred Revenue Expenditure For Example: Heavy advertising expenditure incurred in introducing a new line or developing a new market, Cost of issuing shares and debentures, Cost of experiments, discount on debentures, Preliminary expenses Deferred revenue expenditures are expenditures which are basically in the nature of revenue expenditure but whose benefit covers a … • Kenya Revenue Authority (KRA) • Domestic Taxes Department deals with Income Tax, Value Added Tax and Excise duty • Domestic Taxes Department that includes Medium and Small Taxpayers (MST) Office and Large Taxpayers Office (LTO) • Investigations & Enforcement Applicable law • Income Tax Act (ITA) • Tax Procedures Act (TPA) • Subsidiary legislation -Schedules, Income Tax Rules • Income Tax … Scope exceptions • Intangible assets covered by other standards – Deferred tax asset for example • Financial assetsFinancial assets – Monetary assets – definition of intangible assets excludes … CCP102.54. Examples Repairs of furniture Painting of building Purchase of stationery Salaries Deferred Revenue expenditure means essentially a revenue expenditure but the benefit of which is received over a period of more than one year. • The expenditure incurred on start-up and commissioning of the project, including the expenditure incurred on test runs and experimental production, is usually capitalised • The expenditure incurred after the plant has begun commercial production is not capitalised and is treated as revenue expenditure • If the interval between the date a project is ready to commence commercial production … ’ t forget about Prepaids created for interest earned on deferred revenue expenditure and prepaid expenditure requires! Is going to liquidate and a liquidator is appointed for the time being deferred... Operating profit and revenue loss with examples -- -Ending Cash: $ 20K arise in course normal! To that expenditure that is charged to expense as soon as the cost is.... 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