Deferred Law and Legal Definition

Deferred, in accounting, is any account where the asset or liability is not realized until a future date, e.g. annuities, charges, taxes, income, etc. The deferred item may be carried, dependent on type of deferral, as either an asset or liability. For example, deferred compensation is an arrangement in which a portion of an employee's income is paid out at a date after which that income is actually earned.