A new start up investment manager has incurred 3rd party placement agent fees in sourcing and securing investors in their new Fund. These fees are calculated based on the amount of investor commitments at the first close but can be paid in instalments over 48 months (as a sizeable amount). Under FRS 102 do these fees need to be written off immediately or can they be written off over the life of the Fund? The amortisation would be based on the fact that the fees of the placement agent, through their securing of investor commitments, have provided future economic benefits (ie the investment advisory income earned from the investor commitments received over the fixed life of the Fund).
Thoughts on this gratefully received.