(c) Matching principles .matching principle that says that revenues and any related expenses should be recorded in the same period.
What is deferral accounting ?
In a company's general ledger, deferrals are a sort of "adjusting" entry that postpones the recognition of a transaction in the company's accounting records to a future fiscal quarter (or periods). Revenue, or the amount to be collected, and costs, or the amount to be paid, be postponed via deferrals.
The matching principle and revenue recognition are the two accounting principles that underlie both revenue and expenditure deferral. The Financial Accounting Standards Board (FASB) describes the revenue recognition concept, which is key to accrual-based accounting, as "when the selling business achieves a performance obligation by transferring a promised item or service to a customer, giving the customer ownership."
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