A company previously expensed the incremental costs of obtaining a contract.
All else being equal, adopting the May 2014 IASB and FASB converged accounting
standards on revenue recognition makes the company’s profitability initially
What is expensing the incremental costs of obtaining a contract? Can someone explain me? I don`t know what the question is trying to say.
If possible also give me a example of a contract on the BS and IS.