Advertisement expenses

AS 1123 views 1 replies

suppose i have paid 500000for advertisement which is expected to give me benefit for the period of 5 year.

how i should account this.

i think i should treat it as deferred revenue expenditure.

however i strongly feel it should be written of in a year.the logic on the basis of which i think like this is that AS 26 is clean up standard which says that  if a expenditure fulfills the ARC, is accounted as an intangible assets under As 26 & written off as prescribed in As 26 itself and if not fulfilled then write off in year the year itself in which it is incurred.

 

plz give your suggestion.

thanks  a lot

Replies (1)

You should treat it as deferred revenue expenditure

But if the expenditure of Rs 5 Lacs  is not very large compared to size of your business operations

Then the same may be written off in a year


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