our company is in film industry, and we have purchased rights as stock for 5-6 years to broadcast programme on television. We have 2 companies dealing same business. Deal All, My query is we are not maintain stock in inventory because rights purchased is invisible. We are directly put stock amount in closing stock on 31.03.2XXX. I have to transfer my closing stock from one company to other company for broadcasting. How to pass journal entry to stock transfer? because inventory not maintained stock transfer entry can't pass in stock journal. Could be adjustment in reverse purchase entry. Please reply
12 August 2016
which company has bought it? In its books it is INTANGIBLE asset. This Standard also applies to rights under licensing agreements for items such as motion picture films, video recordings, plays, manuscripts, patents and copyrights.
Please refer the link for accounting standard 26 http://www.mca.gov.in/Ministry/notification/pdf/AS_26.pdf
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