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A Company Symbol or Logo Was Developed by a Consultant at a Cost of $250,000. How Should This Transaction Be Recorded and Reported?
In this case a company is paying the amount of $250,000 to the consultant for developing the logo, so it can be treated as an expense. The main cost of developing trademark lies in advertising, which should be charged to expense in the period incurred (Hoggett et al 2006). For e.g. David Beckham, a brand name and an asset to the England team, but on the other hand can be referred to as an expense. If a company has made a contract with him, it would pay David Beckham to play for couple of years, but on the other hand there is no guarantee that he will play every match to his best, he can get injured which can cause the company an expense because they have paid David on the basis of the contract. Similarly in this case, there is no guarantee that a company will earn certain amount.…
- A Company Symbol or Logo Was Developed by a Consultant at a Cost of $250,000. How Should This Transaction Be Recorded and Reported?
Management Control in General Jeans Company
- Marks & Spencer
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