can i defer an expense for annual but which is incurred in one period under IFRS

Question

We spent expenses in the month of February for annual staff party which are held once a year.we would like to allocate this expenses for periods of the whole year . Can we defer ?

Answer 1

If you were to defer expenses, that means that you would have to recognize assets.

However, in order to recognize asset one of the criteria is: it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity.

So, future economic benefits will not flow into the entity from those Annual Staff Party. Generally, it is not the case and such expenditure is recognized in period in which it is incurred.