Tangible & Intangible current assets

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Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2010 Hi, will debtor, cash at bank & prepaid expense be an intangible current asset? if not then why.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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08 August 2010 The question relates to conceptual clarity.

First of all; better say what do you mean by tangible asset and intangible asset ?

Also tell what do you mean by Current Assets ?

I hope the moment you will try to know about these; you would automatically know each and every thing about all.

Tutorials :
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Refer your book carefully.

Still if there is a query, ask with all your doubts.

I will try my best to reply to your satisfaction.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2010 I still dont get any clarity. Please help me.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 August 2010 An intangible asset is an identifiable non
without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes.
Analysis of Definition (read with definition of Asset)
1. Identifiability
2. Control by enterprise
3. Expectation of future economic benefits
Any expenditure not meeting definition of intangible asset, are
expensed when incurred.
non-monetary asset,Current Assets are tangible assets and not intangible assets.

Assets may be classified as under :

(a) Current Assets

Assets which are in the form of cash or convertible into cash easily are called current assets. Cash, Bills Receivable, debtors and stock are current assets.

(b) Fixed Assets

Assets in the form of immovable properties like furniture, land, building and Machinery are called fixed assets. These are not for conversion into cash.

(c) Intangible Assets

These are the assets which cannot be seen like goodwill, patents, etc

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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09 August 2010 You can also check AS 26 for details.

Please check this link----

http://www.mca.gov.in/Ministry/notification/pdf/AS_26.pdf

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