$720-35-25-5$

Costs of communicating advertising are not incurred until the item or service has been received and shall not be reported as expenses before the item or service has been received. For example:

a

The costs of television airtime shall not be reported as advertising expense before the airtime is used. Once it is used, the costs shall be expensed.

b

The costs of magazine, directory, or other print media advertising space shall not be reported as advertising expense before the space is used. Once it is used, the costs shall be expensed.