AASB 15 Revenue from Contracts with Customers 91-94: Capitalise incremental contract acquisition costs when recovery is expected, expense costs that would be incurred regardless, with the one-year expedient

What does 91-94 require?

Costs that would not have been incurred had the contract not been won, sales commissions being the typical case, are recognised as an asset when the entity expects to recover them. Costs incurred whether or not the contract is obtained are expensed when incurred unless the customer is explicitly liable for them whatever the outcome. The entity may expense incremental costs as incurred when the amortisation period of the asset would be one year or less.