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
Wages, benefits, and bonuses 6,800,000
Other operating costs 3,300,000
Revenue – ticket sales (6,000,000)
– other (800,000)
What is the correct accounting under IFRS?
What costs can be capitalized?