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:

Graduating Harvard Law School

Graduating Harvard Law School signifies successfully completing a rigorous academic program at one of the world's prominent legal institutions, often leading to prestigious career opportunities.

Job Search

The act of looking for employment, due to unemployment, discontent with a current position, or a desire for a better position.

Economic Efficiency

A situation where resources are utilized in the most effective way possible to meet the needs and wants of individuals and society.

Type of Unemployment

Categorizes joblessness based on reasons such as cyclical (due to economic downturns), frictional (short-term transitions), and structural (mismatch of skills).