Leo wants to capitalize all costs of NSL on NSL’s books until it has completed its first year of operations.  In addition to the franchise fee, $20 million will have to be spent on the following: 

Acquisition of player contracts                                                               $ 12,000,000

Advertising and promotion                                                                         1,500,000

Equipment                                                                                                 3,200,000

Wages, benefits, and bonuses                                                                 6,800,000

Other operating costs                                                                                3,300,000



Revenue – ticket sales                                                                        (6,000,000)

               – other                                                                                     (800,000)


                        $          20,000,000

What is the correct accounting under IFRS?
What costs can be capitalized?