IAS 38 Intangible Assets – Advertising and Promotional costs
Status:
The IFRIC’s proposed amendments were discussed by the IASB in April, May and June 2007. The changes are now being considered as part of the Annual Improvements Process. As such, the issue has been removed from the IFRIC’s active agenda.
Summary of the issue:
At its September 2006 meeting, the IFRIC agreed to take on a project to consider when costs incurred for advertising and promotional activities (including catalogues) may be carried forward in the balance sheet.
In so doing the IFRIC agreed that it would pay particular attention to paragraphs 68-70 of IAS 38, which state that advertising and promotional expenditure must be recognised as an expense when incurred but do not preclude recognising a prepayment when payment for the goods or services has been made in advance of the delivery of goods or rendering of services.
Next milestones:
The IFRIC’s proposed amendments were discussed by the IASB in April and May 2007. The changes are now being considered as part of the Annual Improvements Process.
Discussed by the IFRIC:
Discussed by the IASB:
Staff contact:
- Tricia O’Malley (Director of Implementation Activities) tomalley@iasb.org