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How do companies handle catalog costs?

Does anyone capitalize the cost of printing catalogs and amortize over the planned life of the catalog?

Answers

Dawn Hall
Title: Chief Financial Officer
Company: Bionix Development Corp
(Chief Financial Officer, Bionix Development Corp) |

We expense them.

Michael O'Brien
Title: Controller
Company: Auction Holdings
(Controller, Auction Holdings) |

The common practice by traditional catalogers is to capitalize and amortize over the period of benefit. Initially, that may be an estimate but with experience you should be able to rely on historic data to project.

Qasim Asghar (ACCA, CPA)
Title: Finance Manager
Company: Anasy Media, Dhabi Group
LinkedIn Profile
(Finance Manager, Anasy Media, Dhabi Group) |

I do not think capitalizing costs of catalogs would meet all the criteria of recognizing an amount as an asset, so better to expense them out.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

If the catalogs are not for sale, but for marketing; then I agree with Dawn and Qasim. They are general overhead and should be expensed.

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