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

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

ASIM ATREY AND ASSOCIATES

ABHISHEK RATHORE

madhu sudan

Sapan Kumar Nayak

Ramulu Thakkalapally

Subscribe Now

AS-26

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