How are advertising costs of launching a new product treated?
ACapitalised in the cost
BExcluded from asset cost
CDeferred over five years
DAdded to goodwill
Answer & Solution
Correct answer: B. Excluded from asset cost
Costs of introducing a new product, including advertising, are not part of the cost of an intangible asset.
Keep practising Ind AS 36 Impairment of Assets and Ind AS 38 Intangible Assets
Browse all Ind AS 36 Impairment of Assets and Ind AS 38 Intangible Assets questions for CA Final, or explore more Financialreporting topics.
Related questions
With no active market now, a revalued intangible is carried at what?Prior recoverable amount may be reused if the margin was what?Acquired intangibles that cannot be recognised separately go where?Costs of an entity's own website at the planning stage are treated how?The best estimate of a recognised website's useful life should be what?A website from development is recognised only if it meets what?To assess impairment of an intangible asset, which Ind AS is applied?How may a nominal-cost government grant intangible be measured?