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    Question

    Customer acquisition costs (agent commissions) for

    one-year policies are paid upfront. Can they be capitalized as intangible assets?
    A Yes, as marketing intangible Correct Answer Incorrect Answer
    B Yes, if directly attributable to contract Correct Answer Incorrect Answer
    C No, expense unless specific standards allow DAC (which Ind AS does not) Correct Answer Incorrect Answer
    D Capitalize and amortize over three years Correct Answer Incorrect Answer
    E Recognize as prepaid indefinitely Correct Answer Incorrect Answer

    Solution

    Ind AS has no DAC concept; acquisition costs generally expensed when incurred.

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