What is Prepaid expenses (deferred expenses)?

Expenses paid in the current period but relating to subsequent reporting periods. They are not expensed immediately: first they sit as an asset in account 3100 "Deferred expenses – current portion", and then they are transferred to expenses in portions in the relevant periods. Under NAS No. 21, the sub-accounts of account 3100 are as follows.

• 3110 Prepaid operating lease rent
• 3120 Prepaid service fees
• 3190 Other prepaid expenses