$400,000 spent on designing a new corporate logo for the business. Sir why is this expensed to SPL? Isn't this an example of research put to action to generate sales and hence qualifying as developmental costs and subsequently should be capitalised!
Ask the Tutor ACCA FR
development vs. research costs
5y ago#1Hi,
No, it is just general business expenditure as you would not be able to demonstrate future economic benefit from the logo.
Thanks
we can demonstrate future economic benefit from the logo, if people start to recognise our brand with the logo and the logo becomes like a hit, isn't a good enough reason to capitalise its expenditure?
5y ago#3No, how can you demonstrate that the expense is purely on a logo/brand? How do you know the benefit has come from the new brand?
Sign in to reply to this topic.