Hi,
I just want to know whether product testing and approval cost paid to CPRI or BIS which is essential for marketing or sale of a product (it's pre qualification of product) and such approval will give future benefit in the form of making product marketable. CPRI will provide test certificate that will valid to market the product (Mostly customer need such certificate to approve the product) so benefit of such approvals will be in long run.
My query is whether we can amortize such expenditure in future period of say 3 to 5 years either by recognizing such expenditure are intengible asset or in the form of prepaid expenditure spreding cost to such period.
Regards and thanks in anticipation.
B. Patidar
CAclubindia
