Depreciation of Intangible assets
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 February 2010
Can any body suggest me what are the rates of depreciation for the following items:
1. Customer relation ships
2. Technology
3. IPR& D (In process R&D)
4. Non-Compete
5. Good will..
1. Customer relation ships
2. Technology
3. IPR& D (In process R&D)
4. Non-Compete
5. Good will..
11 February 2010
Depreciaton rate is 25% in case of Income Tax on All Intangible assets.
However, i have doubt that following assets to be treated as Intangible assets, i think these should be treated as revenue exp.:
1) Customer Relationships
2) Non-Compete
3) Research portion in R&D exp.
Regards!!!
However, i have doubt that following assets to be treated as Intangible assets, i think these should be treated as revenue exp.:
1) Customer Relationships
2) Non-Compete
3) Research portion in R&D exp.
Regards!!!
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 February 2010
Thanks for the reply.. Can you just let me know abt IPR&D.. In process research & Development..
12 February 2010
According to AS-26(Intangible Assets), it is given that :
Research portion should be treated as Indirect Expenses in P&L account.
However, Development portion should be capitalize in value of that asset for which development process is carrying on.
Therefore, if research portion is debiting in P&L so it should be revenue expenditure, whereas, if Development portion is capitalizing then depreciation to be claim on this.
Reagards!!!
Research portion should be treated as Indirect Expenses in P&L account.
However, Development portion should be capitalize in value of that asset for which development process is carrying on.
Therefore, if research portion is debiting in P&L so it should be revenue expenditure, whereas, if Development portion is capitalizing then depreciation to be claim on this.
Reagards!!!
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