A deferral is the recognition of an expense that has arisen but has not yet been recorded.

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A deferral is the recognition of a revenue that has arisen but has not yet been recorded, not an expense. An example of a deferral is when a company receives payment for services not yet rendered or goods not yet delivered. The revenue is recognized as a liability until the services or goods are provided, at which point it is recognized as revenue.

A Deferral Is the Recognition of an Expense That Has