What Is an Example of Deferred Acquisition Costs and How

question 22

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.
• E) All of the given answers.

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Definitions:

Research Evidence

Information gathered through scientific methods to support or refute a hypothesis, theory, or finding.

Internet Search

The process of using a web search engine to find information on the internet.

Performance Improvement

A systematic approach aimed at enhancing workflows, processes, or outputs within an organization to boost efficiency or quality.

Rate Of Falls

A metric used to measure the frequency of falls per unit of time, often within healthcare settings to assess patient safety and the effectiveness of fall prevention measures.