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treatment of sponsorships

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › treatment of sponsorships

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  • August 13, 2017 at 12:31 pm #401688
    avisheksanyal89
    Member
    • Topics: 10
    • Replies: 1
    • ☆

    if a company sponsors players to ‘improve brand image’. will the sponsorship count as an intangible asset or be expensed as advertisement expenses?

    August 14, 2017 at 3:51 pm #401805
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7082
    • ☆☆☆☆☆

    Hi,

    It is just an advertising expense. To be capitalised it needs to provide probable future economic benefits and there is no guarantee that this will happen.

    Thanks

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