What should be the treatment of costs related to advertising and training associated with intangibles?

The appropriate treatment of costs related to advertising and training associated with intangibles is that they should always be expensed. This principle is grounded in financial accounting standards, which dictate that costs should be recognized in the period in which they are incurred. Advertising and training costs do not meet the criteria for capitalization as they do not generate future economic benefits that can be reliably measured; instead, these costs are typically consumed during the period in which they are incurred.

Capitalizing costs suggests that the expenses will provide future revenue, but because advertising is aimed at promoting future sales and training costs are often necessary for operations, they do not create a directly identifiable asset. Consequently, recognizing these costs as expenses immediately reflects a more accurate picture of the company's financial position and performance in accordance with generally accepted accounting principles.