16 June 2015
One company expended huge money for making of a Advertisement Film for its newly introduced product , which can be broadcasted on TV for 2 years, However the benefit from the Ad can not be presumed. Should this expenditure be Written off completely in the year of Making of the film, or should it be deferred for two years.
Please provide the reference to Accounting Standard or Rules or Act or Guidance Note for support.
17 June 2015
Dear The concept of deferment is not more relevant. Now no expenditure can be deferred. With the introduction AS-26, the deferment is not now permissible. Hence,whole expenditure should be expensed i.e transferred to P&L a/c.
CAclubindia
