UITF Abstract 34 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:

• icaew.com/newukgaap

Synopsis

The consensus is:

• Pre-contract costs should be recognised as expenses as incurred but directly attributable costs should be recognised as an asset when it is virtually certain that a contract will be obtained and the contract will have a present value no less than the amount of the recognised asset.
• Costs incurred before the assets recognition criteria are met should not be recognised as an asset then or later. 
• Directly attributable costs are those that relate directly to securing the contract.

• Read UITF Abstract 34 (PDF 22KB/4 pages) 

Last updated 21 June 2015