11 June 2010
one company has paid licence fees for boileer for the period 01.04.10 to 31.03.2015 in financial year 2009-2010. Whether it will be prepaid expense in financial year 2009-2010 in view of AS-26
15 June 2010
AS 26 does not deal with prepaid exp. It, rather, deals with intangible assets. License fees paid is an intangible asset and will be recognised if it meets the recognition criteria of AS 26. It will be shown as an intangible asset in the Balance Sheet and will be amortised over the period of 6 years. Regards, CA Shakuntala Chhangani
CAclubindia
