USA Treatment of expired deferred expenses

[Lutmbi]

If we have deferred expenses (overhead expenses in a manufacturing environment) on our books but the future revenue that they would have gone against are no longer expected to be generated how should we treat the deferred expenses? Recognize them entirely in one period or recognize them over the periods we had originally expected to generate the revenue? Is there any GAAP guideline that supports the solution we should apply? Thanks

 

[kirby]

There is no revenue to match these expenses against. So they are to be expensed entirely now, in one period.