alleryStart learning →A firm spends Rs 6 lakh on a product ad campaign. Treatment?
AAdd to inventory cost
BCharge to profit and loss
CCapitalise as brand asset
DDefer to future years
Answer & Solution
Correct answer: B. Charge to profit and loss
Advertising and promotional spending creates no recognisable intangible asset, so it is expensed when incurred.
Keep practising AS 26 Intangible Assets
Browse all AS 26 Intangible Assets questions for CA Inter, or explore more Accounting topics.
Related questions
The cost of reorganising part of an enterprise is:Amortising an intangible over 25 years requires disclosing:Excess of enterprise market value over identifiable net assets is:Which of these is a common example of an intangible asset?Impairment of an intangible is tested by applying which standard?An exclusive 30 year toll road right is expected to be used 30 years. Amortise over:Software of Rs 9 lakh, 3 year life, straight-line, nil residual. Value after 2 years?A patent costing Rs 12 lakh has an 8 year life and no third-party buy-back commitment. Ann