This AS applies in respect of expenditure on intangible items during accounting period commencing from 1st April, 2003 and it is mandatory for enterprises whose equity or debt are listed on recognized stock exchange in India or are in the process of listing.
For all other enterprises, it is mandatory from 1st April 2004. It is not applicable to intangible assets covered by other accounting standards.
An intangible asset is an identifiable non-monetary asset without physical substance held for use in production, sales and administration.
An intangible asset should be recognized if, and only if, it is probable that the assets can be measured reliably.
Internally generated goodwill, brand, title and similar items of assets should not be recognized.
Depreciable amount of an intangible asset should be amortize on a systematic basis over the economic life of the asset not exceeding 10 years.
Amortization should commence when the asset is available for use.
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