CERTYNEX IFRS ACADEMY

Fleurdane, a mail-order retailer, has its spring catalogue printed. The printer delivers the catalogues on 12 December 20X1; Fleurdane becomes their owner on that date and sends them to its customers in January 20X2. The reporting period ends on 31 December 20X1. When is the cost of the catalogues recognised as an expense?

In 20X1, as soon as Fleurdane holds the catalogues and therefore has access to them.

In 20X2, when they are sent to customers, the cost remaining an asset until then.

From January to June 20X2, over the catalogue's validity period, as an amortised intangible asset.

In 20X2, after being recognised as inventories under IAS 2 until the catalogues are distributed.