Advertising and Customer Acquisition Costs Under U.S. GAAP ON DEMAND

Overview

This course covers the accounting rules for advertising costs and for costs tied to acquiring and fulfilling customer contracts. This course explains when advertising costs must be expensed and when certain sales and contract-related costs can be capitalized and amortized over time. Learn how to evaluate different types of costs, apply the criteria for capitalization, determine the proper amortization pattern, and assess whether an impairment loss is needed if expected recoveries change.

Highlights

Accounting for advertising costs. Basics of advertising. A closer look at ASC 735-20. Recognition requirements under ASC 735-20. A closer look at ASC 944-30. Direct-response advertising. Accounting for contract acquisition and fulfillment costs. Interaction with ASC 606. Scope of ASC 340-40. Costs of obtaining a contract. Costs to fulfill a contract. Amortization of costs. Impairment considerations.

Prerequisites

None.

Designed For

CPAs, CEOs, CFOs, controllers and other financial managers.

Objectives

Identify the types of advertising costs that must be expensed under U.S. GAAP. Determine when direct-response advertising costs can be capitalized. Differentiate between production costs and communication costs in advertising activities. Recognize the disclosure requirements related to advertising expenses. Identify costs that qualify for capitalization as costs to obtain or fulfill a contract. Differentiate between costs that must be expensed immediately and those that can be capitalized. Determine the appropriate amortization methods and periods for capitalized contract costs.

Preparation

None.

Notice

None.