Intangible Asset
This query is : Resolved
12 January 2011
Whether expenditure towards plans, designs and drawings of buildings or plant and machinery will fall under intangible asset? Whether it can be considered as Know-how ?
12 January 2011
Intangible assets is a broad term it convers know how patent trademark copywrite . Design. Plant design any secret formula. Franchise. Layout. So expenditure towards design shall be capitalised only if the condition as specified in AS 26. is satisfied
12 January 2011
if the final asset is as defined in AS 26 then it can be called as intangible asset
12 January 2011
Depends on the concern, in case of a company which is spending these amounts for constructing its assets then the amount on Plans, designs, drawings of buildings or plant an machinery will have to be capitalised with the respective fixed assets as they are directly related to the fixed assets and without these expenses it is not possible to bring the asset into existance as per AS10.
However in case an architectural firm or a machinery manufacturer makes these plans as standard documents to be used in repeated execution of contracts or manufacture of machinery or a turnkey construction company having standard layouts of how to construct a factory etc then these will form part of the know how and the expense that has gone into creating them can be capitalised as per AS 26.
However in case an architectural firm or a machinery manufacturer makes these plans as standard documents to be used in repeated execution of contracts or manufacture of machinery or a turnkey construction company having standard layouts of how to construct a factory etc then these will form part of the know how and the expense that has gone into creating them can be capitalised as per AS 26.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Soyabean hsn code and gst rate
- Treatment of Pension ?annuity returns on PMVY
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- GSTR-4 Annual Return ! Pending Returns for F.Y. 20-21 to 22-23
- GST Taxability
- TDS on payment to CHA as per new section
- Sale of Forign Shares
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
