Learn in the textbookClassification of Assets and Liabilities
DefinitionDeferred assets (繰延資産) are items where expenses already paid, whose benefit extends into future periods, are carried forward as assets into the next period and beyond.
ExplanationTypical examples are organization costs (創立費) incurred when forming a company and start-up costs (開業費) for preparing to begin operations. Both have already been paid, but are considered to keep benefiting the business afterward.
AnalogyThink of the money spent getting ready before opening not as a cost of opening day alone, but as something the following years of business share bit by bit.
Memory hook“Kurinobe” (繰り延べ) means pushing something back. Because expensing is pushed back to later periods, these are deferred assets.