Practicing Success
Accounting Standard-26 prohibits the recognition of internally generated: |
Goodwill Brands and publishing titles Tangible assets Intangible assets |
Intangible assets |
AS- 26 (Accounting Standard 26) prohibits the recognition of internally generated intangible assets. This means that any intangible asset that is internally generated within an organization, such as internally developed patents, trademarks, copyrights, or software, should not be recognized as an asset on the balance sheet. Internally generated intangible assets are excluded from recognition because their value is often difficult to determine reliably. It can be challenging to objectively measure the costs incurred and the future economic benefits associated with these assets. Therefore, AS 26 requires the exclusion of internally generated intangible assets from recognition. |