Is graphic design an expense or an asset?

[Andrew Duffy]

I'm in the process of getting a basic new business identity deisgned - company and product logos, stationery and a holding page web site. Should I account for this as an expense or an asset? I can see how the logos could be an asset, but a stationery design and a non-revenue-generating website look more like expenses. The invoice has a single line so I may be unable to break out the various parts.

A related question is, if some or all of the design is an asset, what are the accepted journal entries for correcting my mistake in accounting for it all as an expense?

 

[mathepac]

Personally I would just expense the lot. Unless the logo is a registered trade-mark and has some serious clout behind it, expense it, same thing with your holding web-site.

What do your accountants say?

 

[aircobra19]

I would think its all expenses until it becomes worth something itself.