What should be done, if an intangible asset does not meet the recognition criteria under Accounting Standard-26?

Recognized as an expense

If an intangible asset fails to meet the recognition criteria outlined in Accounting Standard-26, it should be recognized as an expense rather than capitalized as an asset. This means that the costs incurred in relation to the intangible asset should be immediately expensed in the period in which they are incurred. Capitalizing an asset involves recognizing it as an asset on the balance sheet and amortizing or depreciating it over its useful life. However, when an intangible asset does not satisfy the recognition criteria, it does not meet the criteria for capitalization, and therefore, it should be treated as an expense in the financial statements.