Examining Accounting Standards for Intangible Assets Accounting Essay
Accounting Standard, AS 26, 'Intangible Assets', issued by the Council of the Institute of Chartered Accountants of India, comes into force in respect of expenditure on intangible items during accounting periods beginning on or -4- and is mandatory from that date earth. for the following: i. Enterprises. These are called intangible assets. There are two main problems with accounting for intangibles. The first problem is determining the initial cost of the asset. Then there is the need to recognize the expiration of these costs. Intangible assets have a life of more than one year. This is usually done through a process called amortization. British accounting standards allow intangible assets to be accounted for according to the procedures and rules of intangible assets and goodwill. However, accountability for research and development costs is determined by technical accounting standards. Power and International Accounting Standards: Evidence from Segment Reporting and Intangible Assets Projects - Author: Winston Chee Chiu Kwok, David Sharp - This study provides important empirical data and analysis of the international standard-setting process as conducted by the forerunner of the. Because they are not investments in tangible assets, most expenditures on intangible assets are not recognized as business investments under US GAAP or IFRS accounting principles, the associated R amp D costs.