The proposed changes in accounting for advertising costs: impact on financial statements and managers′ behaviour

Abstract

Examines the Accounting Standards Committee′s proposal that all advertising costs other than direct response be incurred or expensed the first time the advertising takes place. Suggests that managers who have been deferring the write‐off of advertising costs, the proposed rule change provides incentives to reduce the level of advertising and/or postpone these expenditures.

Citation

Tucci, L.A. and Tucker, J.J. (1993), "The proposed changes in accounting for advertising costs: impact on financial statements and managers′ behaviour", Journal of Consumer Marketing, Vol. 10 No. 4, pp. 37-45. https://doi.org/10.1108/07363769310047383