Capitalizing the marketing costs


Response to the following problem:

Lenexa State Bank has followed the practice of capitalizing certain marketing costs and amortizing these costs over their expected life. In the current year, the bank determined that the future benefits from these costs were doubtful. Consequently, the bank adopted the policy of expensing these costs as incurred.

How should the bank report this accounting change in the comparative financial statements?

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Cost Accounting: Capitalizing the marketing costs
Reference No:- TGS02123725

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