Capitalization expenses IFRS
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
26,800,000
Less
Revenue – ticket sales (6,000,000)
- other (800,000)
$ 20,000,000
What is the correct accounting under IFRS?
What costs can be capitalized?
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[...] IFRSLIST.COM – The online community about IFRS, Accounting and Auditing added an interesting post on capitalization expenses IFRSHere’s a small excerptLeo 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 [...]
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