Question

According to AS 26, which of the following costs cannot be capitalized as part of an intangible asset?

Q: Answer-According to AS 26, which of the following costs cannot be capitalized as part of an intangible asse...

AS 26 states that costs directly attributable to preparing the asset for use can be capitalized, including purchase price and professional fees. However, costs such as advertising, promotional activities, and general overheads are not capitalized and are expensed as incurred.

A Purchase price of the intangible asset, including import duties and non-refundable taxes

B Directly attributable costs of preparing the asset for its intended use

C Costs of advertising and promotional activities related to the intangible asset

D Professional fees paid for legal services directly related to acquiring the asset

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According to AS 26, which of the following costs cannot be capitalized as part of an intangible asset?

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