Suppose I have made advance payment of 600000 to acquire an intangible asset, in equal installments in the month of December, January and February and agreement is for the month of April and year ends.
Should I recognize it as an intangible asset?
Can I charge depreciation on it?
1 Replies
Priyanka Jhanwar
(140 Points)
Replied 01 July 2020
Intangible asset will be recognised only when it is ready to be used as intended by management. Since only advance payment has been made, same should be recognized as an asset as advance for assets. However intangible asset will be recognised only in the month of April after it is ready to be used as intended by management.
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