Capitalization of Customer Acquisition Costs in Online Business

The article examines the pressing issue of accounting for customer acquisition costs (CAC) in online companies. In the digital economy, where the clientele serves as the key asset, these expenses take on the nature of capital investments generating future revenue. However, current financial accounting standards specify their classification as period expenses. This leads to a systemic distortion of the financial statements of growing companies, which fail to reflect the true economic value of the developing business. The aim of this paper is to analyse this contradiction and develop conceptual approaches that allow for a more adequate reflection of the investment nature of CAC. The research methodology includes a comparative analysis of accounting requirements, a unit economics analysis focusing on CAC and LTV metrics, and the construction of standard cost models for various online business segments. The results confirm that formal capitalisation of CAC under IFRS is impossible due to the failure to meet the customer control criterion. The author presents as a solution the “management capitalisation” model, implemented in internal reporting. This model assumes the conditional recognition of the portion of CAC that is recouped within a clearly predictable timeframe as an asset, followed by depreciation, allowing for a standard-adjusted picture of profitability. The practical significance of this study lies in providing management and investors with tools for accurately assessing the long-term economics of internet companies, thereby increasing the transparency and validity of management decisions.

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