Accounitng for intangible assets

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2014 I want to register a trademark fro my Business. For the Purpose i hired a consultant who will assist me for registering.

I have paid Rs. 3500 as registration Fees & Rs. 14000 as their charges for registration

till the Year March 2014, the Trade mark is not yet registered but the department raised a query for which i replied through consultant and again paid the fee of Rs. 3500 to consultant for reply

what will be the accounting treatment as per As-26

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

06 November 2014 The expenditure incurred till the registration should be capitalised.

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2014 Dear Anmol, Can you please explain me with relevant para of As-26 or any other opinion so that i can take it forward

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

06 November 2014 The cost of an intangible asset comprises its purchase price, including
any import duties and other taxes (other than those subsequently
recoverable by the enterprise from the taxing authorities), and any directly
attributable expenditure on making the asset ready for its intended use.
Directly attributable expenditure includes, for example, professional fees
for legal services. Any trade discounts and rebates are deducted in arriving
at the cost.

Querist : Anonymous

Querist : Anonymous (Querist)

06 November 2014 Dear Anmol,

Can we show it under Intangible Assets-WIP

and a foot note in Notes to accounts of financial statements for the Year 2013-14

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

06 November 2014 I think we should show it under "current assets". As you rightly said, the foot note along with notes to accounts shall bear the wording that the expenditure is incurred for registering trade mark. The same shall be capitalised once the trade is mark is registered. (Your views please)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Nithish Kothari

ANUPAMA L KANT

Fahima Malik

velichety.l.narasimharao

T.N.Reddy

Subscribe Now

Accounitng for intangible assets

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA