An IT company has bought the Intellectual Property Rights and assets of another IT Company during F.Y 2010-11.
Difference in Value of assets and purchase consideration is booked as goodwill. So far no goodwill is written off.
As per AS 26, goodwill can be written off in 10yrs in books and u/s 32 of the IT Act, intangible asset can be depreciated @ 25%
Should it be written off in the immedietly succeeding years? or can we start amortisation from the F.Y 2013-14.
your first eligibility to claim dep on goodwill is in FY 2010-11 but you did not claim
start from f y 2013-14 and forget about the previous claim
but your opening wdv for F Y 2013-14 will be arived as you have claimed dep in prevous years
Is it specifically mentioned about WDV in any of the sections of companies act or IT act or any Accounting Standard..?
Company has opening balance of goodwill Rs.90 Crore in books. How to adjust the opening WDV now?
Since no amortisation is claimed, Goodwill block was not recognised in IT computation until F.Y 2013-14. It remained as a Non Current Asset in Balance Sheet. Now IT asset block is to be recognized and amortised.
Kindly help on treatment in both IT and books...?
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