What should be reported as an expense if the capitalization contribution period is not determinable?

When the capitalization contribution period is not determinable, the appropriate treatment is to report costs as an expense. Amortized expenditure refers to costs that are gradually recognized as expenses over time, rather than being capitalized. This approach is taken because when the period during which a benefit is expected from the expenditure cannot be determined, it is prudent to recognize the cost right away in order to match it against revenues in the proper accounting period.

In the absence of a determinable capitalization period, recognizing these costs as expenses ensures that financial statements reflect the current economic reality, maintaining accuracy and compliance with accounting principles. Thus, reporting these costs as an amortized expenditure aligns with the necessity to expense costs that cannot be connected to future benefits over a clear timeframe.