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GAAP does cover this. Your "high upfront costs" would be capitalized. It wouldn't appear as a loss.
by acchow 8y ago
GAAP does cover this. Your "high upfront costs" would be capitalized. It wouldn't appear as a loss.
- kgwgk 8y agoIt depends on what kind of costs are we talking about. If it was something like "I give one year for free to get the client, and I will make money from them in the years to come because of course there is no reason to think they may switch providers later" I don't think it will be capitalized.