This deferral of collateral charges policy outlines procedures for ensuring that accounting for deferring and amortizing the costs of promotional materials is in compliance with management's objectives.

According to this example, deferring and amortizing the costs of promotional materials follows these steps: tangible collateral materials for distribution to customers and prospects should be expensed in the month the materials are received; print advertising costs should be expensed in the period incurred; public relations services should be expensed in the period incurred; Seminar costs should be expensed in the period incurred; trade show costs should be expensed in the period incurred; etc.