Published On:Sunday, 8 January 2012
Posted by Muhammad Atif Saeed
DEFERRED CHARGES
An asset account reflecting costs which are not chargeable to the accounting period in which paid but are recorded as assets until amortized. An example is discount on bonds issued. Deferred charges differ from prepaid expenses in that deferred charges usually extend over a long period of time (more than five years) and are not a regularly recurring cost of operation. Refer to PREPAID EXPENSES.
