Deferred Charges (SF.BS.DeferredCharges)
Deferred Charges (SF.BS.DeferredCharges) refers to prepaid expenses other than for operations. Such expenses may be deferred and amortized in later years.
Certain deferred charges, such as debt issuance expenses, may be deferred as an asset and amortized during the life of related debt instruments. However, a similar item, such as debt discounts, may be amortized as an additional interest expense and the remaining balance may be reported as a contra item to related debts outstanding instead of as a deferred charge.
Deferred Charges (SF.BS.DeferredCharges) includes:
- Deferred financing costs, deferred debt issuance costs, deferred loan expenses
Deferred Charges (SF.BS.DeferredCharges) does not include:
- Prepayment for inventory purchases (classified as a related inventory item such as Inventories – Finished Goods (SF.BS.Inventories_FinishedGoods) Inventories – Raw Materials (AIMR), etc.)
- Prepayment for purchase of fixed assets when reported as a part of tangible fixed assets, or as a part of non-current assets but not as a part of tangible fixed assets (classified as Construction in Progress – Gross (SF.BS.ConstructionInProgressGross))
- Prepayment for pension benefits or any employment-related items such as post-retirement health benefits (classified as Pension Benefits – Overfunded (SF.BS.PensionBenefits_Overfunded))
- Taxes recoverable (finite receivable) (classified as Receivables – Other (SF.BS.Receivables_Other) when reported as a part of current assets, or Other Long-Term Assets (SF.BS.OtherLongTermAssets) when reported as a part of non-current assets)
- Deferred tax assets (estimated receivable) (classified as Deferred Income Tax – Long-Term Asset (SF.BS.DeferredIncomeTax_LTAsset))
- Deferred acquisition costs (classified as Goodwill, Gross (SF.BS.GoodwillGross) when amortization of goodwill is present, and Goodwill, Net (SF.BS.GoodwillNet) in the absence of the amortization)
- Decommissioning funds in utility companies (classified as Long-Term Investments – Other (SF.BS.LTInvestments_Other))
- Deferred development costs (classified as Intangibles, Gross (SF.BS.IntangiblesGross) when amortization of intangibles is present and Intangibles, Net (SF.BS.IntangiblesNet) in the absence of the amortization)
- Deferred royalty payments, deferred commissions paid, deferred consulting fees paid, or other operating expenses (classified as Prepaid Expenses (SF.BS.PrepaidExpenses) when assets of a company are delineated between current and non-current, otherwise Other Long-Term Assets (SF.BS.OtherLongTermAssets))
- Deferred or prepaid interest expenses (classified as Prepaid Expenses (SF.BS.PrepaidExpenses) when assets of a company are delineated between current and non-current, otherwise Other Long-Term Assets (SF.BS.OtherLongTermAssets))