Policies of aggressive capitalization and extended amortization periods of use. Unlike enterprises that improve their results by increasing revenue, some companies increase their result by minimizing costs. They minimize their costs by aggressive capitalization of costs that should affect the profit and loss account also by depreciating amounts for extended periods. There are cases where expenditure to be capitalized is not easily determined and thus, it is recommended to appeal to professional judgment in order to determine whether or not capitalization is required. These are items such as software development costs, advertising costs and development costs. When an expense is.
