Treatment of brand logo

Krishnanunny (student) (43 Points)

11 August 2011  

Suppose a company launches a new brand logo or brand identity, expenses incurred by the company towards the cost of designing (which is substantial), registration and other legal cost and huge advertisement cost for launching the same, what should be the proper accounting treatment - whether it is to be capitalised as per AS 26 or expensed in P&L a/c. Please advice about the relevant provision under Income Tax Act and Companies Act with respect to the same.