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In accounting treatment, Advertising Expense is revenue expenditure or need to be capitalized?

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Question added by khalid Rizvi , General Manager , QA & HSSE, United Marine Agencies pvt. ltd., Karachi, Pakistan
Date Posted: 2015/06/24
PRADEEP MEHRA
by PRADEEP MEHRA , CEO , Angel international Inc.

Thank you for your invite. Principally advertising has its effect or gives results over the years therefore it should be capitalized. However since the advertising expense have to be paid regularly or every year therefore for the purpose of accounting we book it under revenue expenditure every year.

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