Lenexa State Bank has followed the practice of capitalizingcertain marketing costs and amortizing these costs overtheir expected life. In the current year, the bank determinedthat the future benefits from these costs were doubtful. Consequently,the bank adopted the policy of expensing thesecosts as incurred. How should the bank report this accountingchange in the comparative financial statements?

Question

Lenexa State Bank has followed the practice of capitalizing
certain marketing costs and amortizing these costs over
their expected life. In the current year, the bank determined
that the future benefits from these costs were doubtful. Consequently,
the bank adopted the policy of expensing these
costs as incurred. How should the bank report this accounting
change in the comparative financial statements?

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