Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
INTANGIBLE ITEMS
Computer software Patents Copyrights Motion picture film Customer lists Mortgage servicing rights Fishing licenses Import quotas Franchises Customer or supplier relationship Customer loyalty Market share and marketing rights
Development
Testing pre-production Training Marketing
C
C R R
Inventory
Allocation & separability Stage-wise accounting
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THE COVERAGE
DEFINITION, RECOGNITION & MEASUREMENT 01 TO 34 INTERNALLY GENERATED GOODWILL 35 TO 37 INTERNALLY GENERATED INTANGIBLE ASSET 38 TO 54 INTANGIBLE EXPENSE 55 TO 58 SUBSEQUENT EXPENSE 59 TO 62 AMORTISATION 63 TO 80 IMPAIREMENT 81 TO 86 RETIREMENT / DISPOSAL 87 TO 89 DISCLOSURES 90 TO 98 TRANSITIONAL PROVISION 99 TO 100
AS-26
on
INTANGIBLE ASSETS
intangibles during accounting periods commencing
on or after 1.4.2003 by - listed securities - In the process of listing - Enterprises with Rs.50 Cr. turnover on or after 1.4.2004 by - All others
RECAP
AS 02 AS 06 AS - 07 AS 08 AS 10 AS 12 AS 14 AS 19 AS - 21 AS 22 AS -28
AS-8
Amount of Research & Development cost to be charged as expense in the year in which incurred except in case it fulfills certain criteria Deferred cost to be allocated on a systematic basis to future accounting periods based on expected use or useful life. Deferred cost to be reviewed at the end of each accounting year. To be disclosed separately in the Balance sheet under the head Miscellaneous Expenditure
AS-26
INTANGIBLE ASSETS
Internal Generation
INTERNALLY GENERATED GOODWILL (Para 35/50/61)
VERSUS
(ALL) following conditions are met : - technically viable -intention to complete the asset and use or sell -ability to use or sell the asset -asset to generate probable future economic benefits -availability of adequate resources -ability to measure the expenditure reliably
INTANGIBLE EXPENSE
Recognition of an Expense- when it is incurred. Past Expenses- those initially recognised as an expense
should not be recognised as part of the intangible asset at a later date.
AMORTIZATION
DEFINITIONS: Amortization : Systematic allocation of the depreciable amount of an intangible over its useful life Useful life: period over which an asset is expected to be used or number of production unit expected to be obtained
AMORTIZATION
Amortization Period ,Method & Review: Period- to be amortise over the best estimate of its useful
life by allocating on systematic basis: -to begin when the asset is available for use, -life not to exceed 10 years. -If control is through legal rights for a finite period, then useful life shall not exceed the period of legal rights
Review-
Residual Value
To be assumed as zero unless there is commitment by third party to purchase the asset at the end of its useful life or there is an active market for the asset. Disposal: To be derecognised on disposal when no future economic benefits are expected from its use. Gains or losses arising from the disposal should be determined as the difference between the net disposal proceeds and the carrying amount to be recognised as income or expenses in P&L Account
Transitional Provisions
If existing intangible are not written off over the period as suggested by the standard and the period is over, the carrying amount appearing in the Balance Sheet should be eliminated with a corresponding adjustment to the opening balance of revenue reserve. If the period is not yet over, then carrying amount should be restated as determined by the Standard. If the remaining period is shorter than as determined under the Standard, the carrying amount to be amortised over the remaining period as per the policy. If the remaining period is longer, the carrying amount should be restated.
Disclosures
The gross carrying amount and accumulated amortization at the beginning and end of the period, Useful lives or the amortisation rates, Amortization method used, A reconciliation of the carrying amount and amortization.
Disclosures
(contd. . .)
Internally generated and other intangible assets to be disclosed separately if an intangible asset is amortised over more than 10 years, the reasons thereof a description of any individual intangible asset that is material to the financial statement of an enterprise as a whole restriction on title of an intangible asset amount of commitment for the acquisition of intangible asset aggregate amount research & development expenditure recognized as an expense during the period