What Is an Example of Deferred Acquisition Costs and How

question 27

Multiple Choice

What is an example of deferred acquisition costs and how does AASB 1023 require them to be treated?

• A) They include commission or brokerage paid to agents to attract business. They should be deferred as an asset and systematically amortised over the period of expected benefit.
• B) They include brokerage and legal fees paid in advance of the purchase of land. They should be deferred and included in the cost of the land.
• C) They include the purchase of client lists and policy details from agents. They should be capitalised as an intangible asset and revalued at balance date.
• D) They include brokerage and legal fees paid in advance of the purchase of land. They should be deferred and included in the cost of the land and they include the purchase of client lists and policy details from agents. They should be capitalised as an intangible asset and revalued at balance date.

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Definitions:

Mass Transportation

Infrastructure established to transport a significant population effectively in cities and surrounding suburbs, encompassing vehicles such as buses, trains, subways, and trams.

Land Availability

The extent to which usable land is accessible for a specific purpose, such as agriculture, urban development, or conservation.

Pollution Prevention

Strategies and practices aimed at reducing or eliminating sources of pollution to prevent damage to the environment.

Urban Growth

The expansion of cities and towns as populations increase and new developments are built, often leading to challenges like congestion and pollution.