Deffered revenue expenditure

In AS 26 there is a paragraph about 1st time adoption of AS 26 which states if any Deferred revenue expenditure is being carried forward & after the application of AS 26 if such expenditure doesn't meet the criteria laid down in AS 26 then such Expenditure should be Transferred in P/L a/c of the co.

these are the following condition which is laid down in as 26 to recognize theexpenditure as an asset :-

1) The cost can be determinable 

2) There must be some future economic benefit which will flow to the co.

3)Such asset should be identifiable i.e can be rented or sold

4)Some asset must be created i.e with in the control of the co.

5)Asset must be non moneytary in nature i.e the realisation is not fixed under any agreement.

Moneytary asset means the realisation of amount is fixed under the agreement (for example debtor)

6) Do not have any physical substasnce

& after the application of AS 26 the following cost should be transferred in p&l with their whole amount:-

1) Advertisement expenses (Unidentifiable that such expenses cant be rented or sold)

2) Pre -operative expenses (Unidentifiable that such expenses cant be rented or sold)

3) Preliminary expenses (Unidentifiable that such expenses cant be rented or sold)

4) Staff Training (Unidentifiable that such expenses cant be rented or sold)

5) Customer Loyalty(Expenditure cannot be determined)

Know how is an example of Intangible asset & lets try to check whether all the conditions are fulfilled or not

1) No physical Substance

2)A know how can be rented or sold For example KFC can sell its know how (preparing chicken) to anyone else

3) A self generated know how cannot be indentified as an asset becoz the cost can not be determined but if such know how is purchased from some other co. then the cost can be identified & can be recorded as an asset (For example Know how purchased from KFC)

4) Know how is an asset i.e it is under contol of the co.

5) Know how is a Non moneytary asset i.e the realisation is not fixed under any agreement like Debtor 

6)Know how have some future economic benefit which will flow to the co.

I hope my explanation is simple & Understandable if there is anything wrong (if u think so) then please do let me know Thanku