Final answer:
Under ASPE, subsequent costs are B) expensed immediately and not capitalized as assets. They are disclosed in the footnotes to the financial statements.
Step-by-step explanation:
Under ASPE (Accounting Standards for Private Enterprises), subsequent costs are expensed immediately rather than capitalized and recognized as assets. This means that the costs are recorded as expenses in the period they are incurred.
For example, if a company incurs maintenance costs for a piece of equipment, those costs would be expensed immediately and would not be added to the value of the equipment as an asset.
ASPE requires that subsequent costs be disclosed in the footnotes to the financial statements to provide additional information to the users of the financial statements.