CERTYNEX IFRS ACADEMY

A press group holds a magazine title acquired several years ago. This year, it incurs significant expenditure to redesign the magazine's layout and relaunch its reputation. How does it account for this expenditure?

As an increase in the carrying amount of the title, since it increases its value.

As an expense: subsequent expenditure on a publishing title always goes to profit or loss.

As a separate intangible asset, amortised over the expected life of the new layout.

As an increase in the title if it exceeds a materiality threshold set by management.