Advertising costs may be accrued or deferred to provide an appropriate expense in each period for:

Question

Quizplus · Accepted Answer

Advertising costs can be accrued (recorded before the expense is paid) or deferred (recorded after the expense is paid) for both interim and annual reporting to ensure that the expense matches the period in which the benefit from the advertising is received, providing a more accurate financial picture.

Advertising Costs May Be Accrued or Deferred to Provide an Appropriate