If the costs incurred in fulfilling a contract with a customer are not within the scope of another standard (in our case direct salary costs), when it can be expensed as incurred? Are their any way to avoid capitalising it?
What is meant by the standard by the costs are expected to be recovered?
Why would you wish to avoid capitalising these costs? I think that you’ll find that the costs are within the scope of another standard. The salary costs would be under IAS 19 for example.