CERTYNEX IFRS ACADEMY

Pellia creates its own clothing brand: logo design by a graphic designer and launch advertising campaigns. How does it treat the brand thus generated internally?

It recognises it as an asset at the cost of the logo and the campaigns.

It does not recognise it; the expenditure is expensed.

It recognises it as an asset at its fair value, estimated by a specialist firm.

It recognises it as an asset only after three years of profitable sales.