As per AS-26 assets like goodwill should be written off.

As early as possible but not exceeding its estimated life, which normally should not be beyond 10 years

The correct answer is option 3- As early as possible but not exceeding its estimated life, which normally should not be beyond 10 years.

As per AS-26 assets like goodwill should be written off as early as possible but not exceeding its estimated life, which normally should not be beyond 10 years.

Significant requirements of AS 26 w.r.t Intangible Assets:

1. Intangible asset should be recognised by fulfilling the criteria as recognised under AS 26.

2. If an in asset does not satisfy recognition criteria, it should be expensed.

3. Internally generated goodwill should not be recognised as an asset.

4. Internally generated brands, mastheads, and publishing titles and other similar in substance should not be recognised as intangible assets.

5. Internally generated assets other than the goodwill, brands, mastheads, and publishing titles may be recognised provided they satisfy recognition criteria as prescribed by AS 26.

6. Intangible assets should be written off as early as possible but not exceeding its estimated life, which normally should not be beyond 10 years.