Alternate answer Advertising expenses enhance the brand name of a company. The market value of a company might very well increase as a result of advertising. Accounting principles (US GAAP and IFRS) nevertheless do not recognize marketing expenditures as an asset, because the future benefits may not be measured reliably. In short: marketing expenses are not an asset, but are expended instead. Note: advertising expenses may result in a liability (accounts payable) if the company still needs to pay the advertising company. The liability disappears when the bills have been paid.
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