deferred assets refer to other expenses except fixed assets and intangible assets that cannot be fully included in the current year's profit and loss, and should be amortized for a long period of time in future years, including start-up expenses, improvement expenses of leased fixed assets, and long-term deferred expenses with amortization period of more than one year.

this concept is actually quite close to prepaid expenses, but the difference lies in the term. Prepaid expenses refer to the expenses allocated during the period of not more than one year but more than one month. The expenses allocated for more than one year are deferred assets.

deferred assets are essentially paid expenses. Of course, if you spend the expenses, you should get the assets. Deferred assets are assets in this sense, and they have no entities.

amortization is the expense that occurs this month and should be borne by the product cost of this month and the following months. The amortization period of amortization expenses is one year at the longest. If it exceeds one year, it should be accounted as a long-term deferred expense.