Audit risk Mar/ June 2019

"...the audit of Peony Co for the year ending 31 May 20X9" "The last advertisement will be shown on TV in early May 20X9" So as at the reporting date all the expenditure has been incurred and there is no prepayment (which would be recognised as an asset) for advertisements still to be aired. Costs of advertising and promotional activities simply cannot be recognised as an intangible asset (IAS 38). I do not understand why you are suggesting disclosure rather than expense - disclosure is not a substitute for recognition - an outflow of cash must be recognised as either expense (in SoPL) or asset (in SoFP).