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Consulting fees paid to research & development accounting treatment

Indian Accounting Standards 1409 views 4 replies

Sir,

   Our company paid consulting fees for consultants who are expert in software and hardware for conducting R&D and to enhance the products offered by company.

1.) is it accounted as expense or intangible assets?

2.) if as intangible assets what is the rate of depreciation asper companies act and life of assets?

Please reply......

Replies (4)
Check whether it meets the recognition criteria as per AS26. It seems it doesn't meet. Only if it meets, it is to be capitalized. Else, expense off.
r&d expenditure are treated as expense as per as 26

thanq friends

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