Need your views-
1) A partnership firm paid 23.60 as a franchise fees which is valid for 9 years and is non refundable.
What should be its treatment?
As per AS 26 it is to be considered as intangible asset and should be amortised in agreement term.
And as per sec 32 of it act, it is to written off in 4 years.
So we should prepare 2 depreciation charts ? Or can we just maintain books as per it act as this is a partnership firm and AS are not mandatory. Please guide
CAclubindia
