Accounting for non compete income
This query is : Resolved
21 January 2015
Hi all,
What accounting standard should we use to see treatment that needs to be followed in following case,
Company A has committed to pay comapny B 100mn to buy some rights. A has already paid 60mn out of it and balance 40mn is to be paid on certain conditions being satisfied. I want to know that how do we treat the balance 40 million? and what accounting standard would apply to it. This is not a sale in ordinary course of business.
Thanks for your time!
Regards,
Dhwani
What accounting standard should we use to see treatment that needs to be followed in following case,
Company A has committed to pay comapny B 100mn to buy some rights. A has already paid 60mn out of it and balance 40mn is to be paid on certain conditions being satisfied. I want to know that how do we treat the balance 40 million? and what accounting standard would apply to it. This is not a sale in ordinary course of business.
Thanks for your time!
Regards,
Dhwani
Amol S Joglekar
(Expert)
21 January 2015
Follow AS 26, Accounting for Intangibles.
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