Understanding the Accounting for Advertising Costs​

Course Overview:

This course explains the accounting rules for advertising and promotional costs under U.S. GAAP. It covers when these costs must be expensed and highlights the limited circumstances in which deferral is permitted. You’ll learn how to identify different types of advertising costs, apply the timing rules for expense recognition, and understand the disclosure requirements that may apply.


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