According to Accounting Standard- 26, an intangible asset should be recognized if it:

Is identifiable and without physical existence

According to AS-26 (Accounting Standard- 26), an intangible asset should be recognized if it is identifiable and without physical existence. This means that the asset should have a clear and identifiable form, such as patents, copyrights, trademarks, or software, and it should not have a physical presence like buildings or machinery. Physical existence is explicitly excluded for intangible assets, and the purposes of rental or administrative use do not determine the recognition of an intangible asset. The key criterion is the asset's identifibility and lack of physical presence.