IAS 11 Pre-contract costs
The IFRIC considered providing guidance regarding when is it appropriate to recognise an asset (versus an expense) for pre-contract costs.
Decision not to add
The IFRIC decided not to require publication of an Interpretation on this issue because paragraph 21 of IAS 11 Construction Contracts provides guidance regarding accounting for pre-contract costs relating to construction contracts, and that this guidance can be used for analogous circumstances.
Although the IFRIC agreed not to publish an Interpretation on this issue, it noted that a great deal of care should be taken when determining whether pre-contract costs should be capitalised.
IFRIC reference: IAS 11