Advertising and Customer Acquisition Costs Under U.S. GAAP

Course Overview:

This course covers the accounting rules for advertising costs and for costs tied to acquiring and fulfilling customer contracts. It explains when advertising costs must be expensed and when certain sales and contract-related costs (e.g., commissions, onboarding, and setup) can be capitalized and amortized over time. You'll 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.



 

Learning Objectives:

 Upon completion of this course, you will be able to:

• 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