Whether an asset or not
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 September 2011
Huge payment has been made to regulatory authority of a country for getting approval of a product to be sold in that country. This approval is towards getting approval of the product and also towards marketing the product in that country. This expenditure is incurred on every product the company intends to sell in the other country. Only after such approval the product can be sold on that country. Each Product has a life spam though the approval is for a lifetime. How should such Expenditure be treated.
1. Is it a Capital Expenditure or Revenue Exp?
2. If capital expenditure, will be an intangible asset?
3. If asset then shall it amortized over the life of the product
Please support your answers
1. Is it a Capital Expenditure or Revenue Exp?
2. If capital expenditure, will be an intangible asset?
3. If asset then shall it amortized over the life of the product
Please support your answers
26 September 2011
Q1 Yes, definately it is a Capital Asset in the form of Intangible Asset
as approval of other country is nothing but life-time license.
what is intangible an right to any thing ot carry an business.
As per AS 26, the value of such life shoule be amortised in the useful life of the asset
as approval of other country is nothing but life-time license.
what is intangible an right to any thing ot carry an business.
As per AS 26, the value of such life shoule be amortised in the useful life of the asset
26 September 2011
Q2 Yes definately an Intangible Asset and asset because it is the expense which giving you the benefit for more than ane accounting year
26 September 2011
Yes, as per AS -26 it should be amortized over the life of the product
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
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Building and other construction workers welfare cess act 1996
- Eway bill for machinery reparing
- Bank Accounts in Balance Sheet for ITR 3
- Gift of mutual fund units to daughter
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Form 10BD Filling
- Pan Card apply for Self help group
- Reporting of STCG on Property in ITR
- Error while filling exam form November 2026
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- 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
