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In which expense we book the expense related to
certification of ISO 9001 certificate & consultant fee.
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Answer Posted / h.r. sreepada bhagi
AS 26 issued by ICAI deals with Intangible Assets &
Paragraph 54(C)is reproduced below :
53. The cost of an internally generated intangible asset
comprises all expenditure that can be directly attributed,
or allocated on a reasonable and consistent basis, to
creating, producing and making the asset ready for its
intended use. The cost includes, if applicable:
(a)***
(b)***
(c) any expenditure that is directly attributable to
generating the asset, such as fees to register a legal right
and the amortisation of patents and licences that are used
to generate the asset;
The expenditure should be treated as per the above standard
& any other specific standard. The above paragraph should be
read with all other paragraphs of this standard.
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