The board of directors of your company 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. The board of directors has approached you for advice: -

whether the proposed change is consistent with the Conceptual Framework.

what disclosures, if any, would be required for this change in accounting policy in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors?