Friends, AS-26 is on Intangible asset but preliminary expenses are not that one i.e. it is an fictitious assets. further AS suggest the amortisation of intangible asset in 10 yrs.
Please clarify about the above.
Alternate treatment: By applying the provision of "materiality" under AS-1, the whole amount can be w/off in the 2nd year because value is not material (5900).
Friends, AS-26 is on Intangible asset but preliminary expenses are not that one i.e. it is an fictitious assets. further AS suggest the amortisation of intangible asset in 10 yrs.
Please clarify about the above.
Alternate treatment: By applying the provision of "materiality" under AS-1, the whole amount can be w/off in the 2nd year because value is not material (5900).
Rajkamal, please refer para 56 of AS-26.
I am still stand on my opinion
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