An entity invests N$500 000 in staff training costs once every three years. Management believed that the training gives employees a competitive advantage. The correct accounting treatment for these costs are:
(Choose one correct option only)

Question

An entity invests N$500 000 in staff training costs once every three years. Management believed that the training gives employees a competitive advantage. The correct accounting treatment for these costs are: 
 (Choose one correct option only)

Answer

Capitalise the training costs as an intangible asset, amortise it over three years and then derecognise it when the next training costs are incurred.

Answer

Recognise as an expense in the period when incurred.

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An entity invests N$500 000 in staff training costs once every three years. Mana...

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