What is a contract cost asset or liability

This falls under revenue recognition

AASB 15 Revenue.

Go to the AASB Website here:

In summary

An entity shall recognise as an asset the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs.

Incremental costs are those costs incurred in obtaining a contract with a customer that the entity would not otherwise have incurred had the contract with the customer not been obtained.

Accordingly, under AASB 15 an entity would, for instance, recognise sales commissions paid in respect of signed customer contracts as an asset.

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