Pradelys has a reporting date of 31 December 20X1. It has paid two invoices from its advertising agency: first, 60,000, paid on 15 December 20X1, for a television campaign that the agency will produce and have broadcast in February 20X2; second, 25,000 for advertising spots that the agency fully produced and delivered in November 20X1, and that Pradelys will itself show on the screens in its stores in January 20X2. What amount is recognised as a prepayment asset at 31 December 20X1, and what amount is recognised as an expense in 20X1?
- Payment for the television campaign to be produced in 20X2
- 60,000
- Invoice for the spots produced and delivered in 20X1
- 25,000