The economic life of expenditures manages the treatment of expenditures as capital nature or revenue nature. Over 12 months expenditures becomes capital nature. In 2 years of your assets life, if tangible, would be depreciated as capital assets in 2 years, and is shown as fixed tangible assets in your balance sheet. or if the assets is intangible then would be deferred expenses and not fixed assets. The expenditures deferred over its useful life of 2 years will be amortized in 2 years, and will be treated intangibles in the balance sheet as deferred cost or expenditures. Tangibility or intangibility gives as sunk cost that is un-recoverable, but if it is tangible, and contract is repudiated, the tangible assets in the mid of useful life can be disposed off in the open market. Intangible assets cannot be fetched into the market.