Whether an asset or not
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 September 2011
Huge payment has been made to regulatory authority of a country for getting approval of a product to be sold in that country. This approval is towards getting approval of the product and also towards marketing the product in that country. This expenditure is incurred on every product the company intends to sell in the other country. Only after such approval the product can be sold on that country. Each Product has a life spam though the approval is for a lifetime. How should such Expenditure be treated.
1. Is it a Capital Expenditure or Revenue Exp?
2. If capital expenditure, will be an intangible asset?
3. If asset then shall it amortized over the life of the product
Please support your answers
1. Is it a Capital Expenditure or Revenue Exp?
2. If capital expenditure, will be an intangible asset?
3. If asset then shall it amortized over the life of the product
Please support your answers
26 September 2011
Q1 Yes, definately it is a Capital Asset in the form of Intangible Asset
as approval of other country is nothing but life-time license.
what is intangible an right to any thing ot carry an business.
As per AS 26, the value of such life shoule be amortised in the useful life of the asset
as approval of other country is nothing but life-time license.
what is intangible an right to any thing ot carry an business.
As per AS 26, the value of such life shoule be amortised in the useful life of the asset
26 September 2011
Q2 Yes definately an Intangible Asset and asset because it is the expense which giving you the benefit for more than ane accounting year
26 September 2011
Yes, as per AS -26 it should be amortized over the life of the product
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Refund of AY 22-23
- Tax on capital gains revoked us 54f
- Should I include march foreign salary received in April in my income for FY 2023-24?
- TDR receipts for agreement holder
- Inventory of finished goods
- Confusion around Form 26QB fields
- GST APPLICABILITY ON POLLUTION CHECK SERVICE
- Sale of property furniture sale
- Disallowance of Section 43B(h) to sez units
- Intimation wrongly states taxpayer has offerred u/s. 44ad & states probable resolutiton to do audit
- Refund AY 2012-13 and 2013-14
- DIRECT TAX CODE 2025
- MODEL FILLED AUDIT REPORT FOR TRUSTS IN FORM 10B
- 115TD on cancellation of 12A 80G Registration
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
Trending Online Classes
CAclubindia
