Quote from: nubbins on July 03, 2013, 10:09:55 PM

Quote from: cusdog on July 03, 2013, 08:48:22 PM

Quote from: Peter Lambert on July 03, 2013, 06:43:14 PM

Without trying to start an argument, I was curious why the S.MG art contest payout was listed as an asset and not an expense?

Any framework or set of criteria with respect to capitalization vs. expensing that is loose enough to deem the contest payout to be capital in nature can be used to justify capitalized just about every other expense imaginable. There is a reason that preexisting standards are so stringent with respect to capitalization criteria (identifiability, future economic benefit, measurability, etc). This all seems to be lost on MP.

This led me to: http://en.wikipedia.org/wiki/Goodwill_(accounting)

Quote

While a business can invest to increase its reputation, by advertising or assuring that its products are of high quality, such expenses cannot be booked as contributing to goodwill. There is hence a disconnect: goodwill from acquisitions can be booked, since it is derived from a market or purchase valuation, but similar internal spending cannot be booked, although it will be recognized by investors who compare a company's market value with its book value.

I think this implies booking an expenditure such as this as goodwill is wrong, but I could be reading this incorrectly?