Deferred Charge, Deferred Compensation, Deferred Income




Deferred Charge, Deferred Compensation, Deferred Income :




Deferred Charge : cost incurred in the current period, but that relates to the revenues of a later period and is therefore adjusted so as not to record in the current financial reports any current expense that does not apply to current revenue : Such charges may consist of improvement of plant or equipment that would be put in operation in some later period.



Deferred Compensation : The amount of money that the employer offers to the employees that accrues to the employee in some later period, such as the retirement fund, stock options, etc. : An account in which the cost of deferred compensation in the period it is accured so as to match it against current revenues is recorded.



Deferred Income : Income that is currently received but will be actually earned in some later periods, such as prepayment for a service contract that spreads through many years. The amount that applies to the current year is regarded as income but the amount for subsequent years is withheld to be matched to its relevant period.




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