Accounting Principles and Marketing Models Related to Deferred Marketing Costs

Abstract

Investigates how advertising within accountancy may have a holdover from one period to the next, but that usually the value of marketing assets is not shown on the balance sheet. Highlights that human asset accounting has been presented as a way of valuing the labour force, with varying depreciation methods available for recognizing the deterioration and obsolescence of plant assets. Looks at advantages of recognizing marketing assets such that each operation's income or loss is more accurately reflected by improved matching of certain marketing‐related expenditures to the period in which the benefit accrues. Concludes that accountants are no longer justified in ignoring the issue of marketing assets by writing off all expenditures in the period incurred, because the result could be that the definition of income used lacks consistency.

Citation

Rayburn, L.G. (1986), "Accounting Principles and Marketing Models Related to Deferred Marketing Costs", European Journal of Marketing, Vol. 20 No. 1, pp. 75-82. https://doi.org/10.1108/EUM0000000004629