The board of directors has resolved to change the accounting policy for treatment of advertising expenditure. Previously, advertising expenditure had been expensed as incurred. Following extensive market research, the board has taken the view that benefits from advertising expenditure in the form of product awareness and increased sales will be received by the company over a 3-year period following the expenditure. Due to a recent fire and water damage to the companys accounting records, details of advertising expenditure in prior years have been destroyed.

Required

The board of directors has approached you for advice regarding the disclosures, if any, which are required for this change in accounting policy.