In chapter 3 of this book, the following question was asked as Question 3.7:

On 21 December 20X1, your client paid i10,000 for an advertising campaign. The advertisements will be heard on local radio stations between 1 January and 31 January 20X2. Your client believes that, as a result, sales will increase by 60 per cent in 20X2

(over 20X1 levels) and by 40 per cent in 20X3 (over 20X1 levels). There will be no further benefits.

Write a memorandum to your client explaining your views on how this item should be treated in the year-end financial statements for the three years. Your answer should include explicit reference to relevant traditional accounting conventions, and to the requirements of users of published financial statements.
Now that we have investigated the relevant issues in more detail, what is your opinion of the answer? If you remember how you answered before, you may like to compare your answers.