KOSZTY PROMOCJI – WYBRANE ASPEKTY BILANSOWE I PODATKOWE
PROMOTION COSTS – ACCOUNTING AND TAX ASPECTS

Summary/Abstract: The purpose of the article is to describe and evaluate the accounting and tax rules for the recognition of promotion costs. Some of the promotion costs, for example the costs of advertising and/or sponsoring, are investments that in the short term may affect an increase in sales revenues, and in the long run contribute to an increase of the brand’s value. The regulations prohibit the recognition of promotion costs in assets, requiring their recognition in a statement of profit and loss. The article organizes the terminology refering to promotion, which directs the discussion regarding the inclusion of promotion costs in the accounting books and in the financial statements. The final part of the article presents the tax consequences of promotion costs, focusing on the cost of representation.

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