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AS 26 - 501 Accounting Standard(AS 26(issued 2002...

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Accounting Standard (AS) 26 (issued 2002) Intangible Assets 501 Contents OBJECTIVE SCOPE Paragraphs 1-5 DEFINITIONS 6-18 Intangible Assets 7-18 Identifiability 11-13 Control 14-17 Future Economic Benefits 18 RECOGNITION AND INITIAL MEASUREMENT OF AN INTANGIBLE ASSET 19-54 Separate Acquisition 24-26 Acquisition as Part of an Amalgamation 27-32 Acquisition by way of a Government Grant 33 Exchanges of Assets 34 Internally Generated Goodwill 35-37 Internally Generated Intangible Assets 38-54 Research Phase 41-43 Development Phase 44-51 Cost of an Internally Generated Intangible Asset 52-54 Continued../..
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502 RECOGNITION OF AN EXPENSE 55-58 Past Expenses not to be Recognised as an Asset 58 SUBSEQUENT EXPENDITURE 59-61 MEASUREMENT SUBSEQUENT TO INITIAL RECOGNITION 62 AMORTISATION 63-80 Amortisation Period 63-71 Amortisation Method 72-74 Residual Value 75-77 Review of Amortisation Period and Amortisation Method 78-80 RECOVERABILITY OF THE CARRYING AMOUNT – IMPAIRMENT LOSSES 81-86 RETIREMENTS AND DISPOSALS 87-89 DISCLOSURE 90-98 General 90-95 Research and Development Expenditure 96-97 Other Information 98 TRANSITIONAL PROVISIONS 99-100 APPENDICES
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Accounting Standard (AS) 26* (issued 2002) IntangibleAssets (This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of its objective and the Preface to the Statements of Accounting Standards 1 .) Accounting Standard (AS) 26, 'Intangible Assets', issued by the Council of the Institute of Chartered Accountants of India, comes into effect in respect of expenditure incurred on intangible items during accounting periods commencing on or after 1-4-2003 and is mandatory in nature 2 from that date for the following: * It may be noted that the Institute has issued an Announcement in 2003 titled ‘Applicability of Accounting Standard (AS) 26, Intangible Assets, to Intangible Items’ (published in ‘The Chartered Accountant’, November 2003, pp. 479). The Announcement deals with the issue as to what should be the treatment of the expenditure incurred on intangible items, which were treated as deferred revenue expenditure and ordinarily spread over a period of 3 to 5 years before AS 26 became mandatory and which do not meet the definition of an ‘asset’ as per AS 26. The full text of the above Announcement has been reproduced in the section titled ‘Announcements of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India’ appearing at the beginning of this Compendium. It may also be noted that a limited revision to this Standard has been made in 2004, pursuant to which paragraph 1 of this Standard has been revised (see footnote 4). Pursuant to this limited revision, which comes into effect in respect of accounting periods commencing on or after 1-4-2003, the above Announcement stands superseded to the extent it deals with VRS expenditure, from the aforesaid date (see ‘The Chartered Accountant’, April 2004, pp.1157).
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