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.
Course Publication Date:
September 27, 2025
This course is available with
NO ADDITIONAL FEE if you have an active
self study membership or
all access membership or can be purchased for
$20.00!
| Author: | Kelen Camehl |
| Course No: | ACT-CUSTOMER-29005 |
| Recommended CPE: | 2.00 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Overview |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Accounting
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Learning 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.
- Identify indicators that capitalized contract costs may be impaired.