Dealing with prizes through company accounts

My employer sponsors (with naming rights) a sporting event, of which they also supply the winners prizes.

I know the sponsoring event is dealt with as advertising, however how would the prize for a sponsored event typically be accounted for? It wouldn't have any gifting issues (as far as I am aware), and I can't see it being under advertising so how would be the most appropriate way of accounting for this?

Comments

  • slackda
    slackda Registered Posts: 460
    My feeling is it would come under the cost of the advertising.
  • Thomasl1
    Thomasl1 Registered Posts: 43 ? ? ?
    Our company codes it to either Sponsorship or Public Relations.
  • truecockney
    truecockney Registered Posts: 94 ? ? ?
    Thanks. I've put it under advertising (at least for the time being until the management accounts are run when I'll make our external management accountant aware of it).
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