The company that I work for produces study programs that consist of a video element, workbooks, and instructor guides. In the past the videos have been hardcopy DVD, but they are now usually provided via online digital content. The videos are not sold independently but the instructor guides and workbooks are. We are trying to determine how the cost of these videos should be handled now that they are no longer being printed in hardcopy and are not sold independently.
My research indicates that they should be handled as intangible assets and expensed over time, but there are others who want to call them "marketing tools" and expense the costs in the period in which they occur. I am having difficulty finding documentation to appropriately identify these videos.
Does anyone have experience in this area?
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Terry Walker
Controller
Perkiomenville PA
United States
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