The following statement was included in the annual report of a company: ‘All research, advertising and promotion costs are charged to expense in the year in which they are incurred. This enables the company to begin each new year with a “clean slate”. Each new year benefits from the future earnings generated from new products developed and advertised in prior periods, and there is no offsetting by amortisation of introductory costs.’

Discuss whether this treatment of research, advertising and promotion costs complies with the requirements of current accounting standards, and the definition of an asset.