Dealing with prizes through company accounts

truecockney

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?

slackda

My feeling is it would come under the cost of the advertising.

Thomasl1

Our company codes it to either Sponsorship or Public Relations.

truecockney

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).