can advertisement expenditure be capitalized

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In normal circumstances Advertisement expenses are considered to be of revenue nature.  But some times when the expenditure is very heavy and its benefit is likely to be reaped over a period of 2-3 years, then we can capitalise the Advertisement Expenditure.  This capitalised Advertisement Expenditure is called Deferred Advertisement Expenditure (such capitalised revenue expenses are called Deferred Revenue Expenditure).  This kind of deferred revenue expenditure is written off over a period of 2-3 years (during the period over which the benefit is supposed to be accruing).
answered Aug 18, 2015 by jbsclasses (3,971 points)