Well the expenses that would be deferred in normal business are expenses that have been incurred but not yet paid. A good example in any business is monthly payroll as technically it's deferred until payment on an accruals system. So with that knowledge we can determine that if big hasn't actually filmed the footage. They haven't incurred any expenseses, even though there is deferred revenue this is simply from up front payments which BIG is technically yet to earn.
As for the loss being made a profit by recognising the deferred revenue we still made a loss by accounting standards. But really does it matter if it's deferred if BIG has the cash and is allowed to spend it?
Hopefully that clears up the deferred expenses situation for everyone. It doesn't mean there won't be expenses linked to the deferred revenue it's just simply that big hasn't incurred them either on a cash or accruals basis. They will be incurred as they forfill there job
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