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VErifying intangible assets

CA Sarvesh (Consultant) (44 Points)

10 May 2007

Hi! my query is: should the intangible assets like patents be written off in 10 years or should they be depreciated at 25% p.a. as per the new amendments? How should an auditor verify these aspects?

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Payal Gupta (article assistant) (176 Points)
Replied 01 April 2010

SIR FIRST OF ALL INTANGIBLE ASSETS ARE NOT DEPRECIATED THEY ARE AMORTIZED

AS AN AUDITOR COMPLIANCE WITH as26

LIFE CAN'T BE EXCEED 10 YEARS

ASCERTAIN THAT THE PATENT HAS NOT BEEN LAPSED BY CAREFULLY EXAMINING THE RECEIPTS OF AMT. PAID ON RENEWAL INCLUDING DETAILS THEREOF

IN SHORT EXAMINE IT'S COST , VALUATION, PROPERLY AUTHORISED OR NOT, EXISTENCE & OWNERSHIP BY EXAMINING CERTIFICATES, PRESENTATION & DISCLOSURES BY EXAMINING LIST OF PATENTS & OFFICIAL DOCUMENTS ETC

IT'S BETTER TAKE WRITTEN REPRESENTATION FROM MGT.