Auditguru Auditguru Frequently Asked Questions(FAQ) Auditguru Auditguru
 Meet Us Here
SahilSahil asked 12 months ago

Sir, 
In terms of  Para 97 of INDAS-38, amortization of an intangible asset shall commence from the date when the asset is available for use.
Amortisation shall begin when the asset is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management.
But in the given Question, the contention of directors was held to be correct that Amortization shall not commence since the sales have not yet commenced. why?
Please enlighten me.  

1 Answers
RaviRavi Staff answered 12 months ago

Yes answer should be (d) amortization is required
 
we will send it to ICAI BOS for correction

Call Back Request