Accounting for Advertising Costs: The Options Are Narrowing
Thompson, James H., Hoskins, Margaret A., Flesher, Dale L., The CPA Journal
A considerable variety of practice has existed in accounting for advertising costs. This may be attributed to differing views regarding the length of effectiveness of advertising costs and the lack of a comprehensive standard providing guidance.
Some accountants claim that advertising costs should generally be expensed when they are incurred. Proponents of the expense-as-incurred approach argue that any future benefits that may be derived from advertising expenditures are uncertain. Thus, advertising costs should not be capitalized.
Others believe that selected advertising costs should be capitalized. Proponents of selective capitalization argue that many advertising costs …
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Publication information: Article title: Accounting for Advertising Costs: The Options Are Narrowing. Contributors: Thompson, James H. - Author, Hoskins, Margaret A. - Author, Flesher, Dale L. - Author. Magazine title: The CPA Journal. Volume: 61. Issue: 8 Publication date: August 1991. Page number: 50+. © New York State Society of Certified Public Accountants Feb 2009. Provided by ProQuest LLC. All Rights Reserved.
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