UK Logo's

[Tony Mehmet]

Hi,

I had Logos/advertising banners created for my business which came to a cost in the region of £55. Would the correct thing to do would just Dr Expenses and Cr Bank. As I have read some places that its classed as intangible assets but the amount to me does not seem significant enough to classify it as an asset.

Any thoughts would be grateful.

Thanks

 

[Tyson]

I don't know what the laws and standards are for intangible assets, but the amount seems so insignificant that I think it would be safe to just expense it. For your own accounting purposes however, if you plan on using it for a long time, you can get a better picture of how efficient your business is operating by capitalizing it. This follows with the matching principle: http://www.accountingcoach.com/blog/what-is-the-matching-principle