CERTYNEX IFRS ACADEMY

During the year, Helvan funds a training programme for its sales staff and an advertising campaign, in order to strengthen its reputation and customer loyalty. How is this expenditure treated?

As an expense; no internally generated goodwill is recognised.

As an asset in internally generated goodwill, because it increases the value of the business.

As an asset in goodwill, then amortised over the duration of the advertising campaign.

Training as an expense and advertising as an asset, in internally generated goodwill.