AS-26

This query is : Resolved

Share Report Follow Query Ask a Query

swarupa

swarupa (Querist)
Follow

14 July 2010 Need to connect with someone who is an expert on AS-26.

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
Follow

14 July 2010 ask your query.

swarupa

swarupa (Querist)
Follow

14 July 2010
I need a detailed understanding of which expenses can be considered as attributable towards asset creation,

Standard says selling & admin expenses to the extent directly attributable can be considered.

If there are two activities being carried out in an organisation
1. XYZ revenue activities &
2. IP creation

which expenses-Indirect costs can be attributed

vrnanda

vrnanda (Expert)
Follow

19 July 2010 Hi Swarupa,

explanation for your query is as follows:
a) Entity XYZ has 2 activities normal revenue generating expenses and IP creation.

b) direct expenses include your Manpower expenses ( salaries & wages), direct machinery cost ( depreciation), any direct expenses items of revenue nature (materials required for generation), this i believe you could identify with the available data with the client.

c) indirect expenses include the following:
i) proportionate administration expenes like rent, power, other general expenses.
ii) propertionate marketing expenses like demo etc....
iii) proportionate interest expenses apportionate on a reasonable basis.
iv) expnses incurred for travel, and other.

you can apportion all the relavent and other indirect expenses to the project, provided you should have a reasonable basis for allocation of the said project.

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