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TMI BlogAsset acquitionX X X X Extracts X X X X X X X X Extracts X X X X ..... Asset acquition X X X X Extracts X X X X X X X X Extracts X X X X ..... for its say employees or whatever. We want to capitalise the amount in form of a intengible ( not goodwill) .What it could be? Reply By ajay singh: The Reply: As per AS -10, Accounting for fixed assets: Cost components:- The cost of an item of fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price. Examples of directly attributable costs are: (i) site preparation; (ii) initial delivery and handling costs; (iii) installation cost, such as special foundations for plant; and (iv) professional fees, for example fees of architects and engineers. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he cost of a fixed asset may undergo changes subsequent to its acquisition or construction on account of exchange fluctuations, price adjustments, changes in duties or similar factors. But your case is not in the nature of amalgamation so you can not treat the difference between book value and purchase price as intangible assets. Reply By Reshma kochar: The Reply: Thanks Sir, Than how we will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account for this?? Reply By ajay singh: The Reply: Just capitalise the amount whatever you pay for the acquisition of assets. As there is no any intangible assets in which you account the difference amount. Simp-ly the cost of any assets is determined by the amount you pay for assets. Reply By Reshma kochar: The Reply: Hi, But that will not be justfyable (in transfer pricing senario). Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly By ajay singh: The Reply: Dear Mam, Just clarify me your issue whether it for transfer pricing or accounting issue. Reply By Reshma kochar: The Reply: Dear Sir, Sorry.. i couldn't explain it correctly..... thing is that, we, under a BOT agreement, considering to purchase the assets of company. we are paying a lump sum amount more than its asset value.. want to know how we can defer the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t part of arrangement in form of intangibles..( like business contracts, or human resources value ) and how we can justify the classification of consideration... Reply By ajay singh: The Reply: Make the agreement available to me so that i can give you the answer. Reply By DEV KUMAR KOTHARI: The Reply: Reply is arranged in form of catch words from query and then reply We are paying more than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its book values(Fixed assets)- the negotiated price is cost in your hands.book value has no relation in case of sale. The CMP can be more or less than book value. Moreover we are paying a one time transfer fee - This can be for intangilbel assets acquired form the vendor - these intangible assets and their value should be specified in agreement.. We, under a BOT agreement,- in such situation in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tangible assets in form of technical know -how, technical and commercial data base, trade names and brands and their copy rights, various licences, permissions, grants, tenacies ,supply chain, customers base , financial arrangements, etc. can be intangible assets. The value of intangible assets should preferably be negotiated and form part of agreement, or exervcise of deriving total consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n paid.
The intangible assets should be acquired and used for busienss, and some evidence for the same should be kept. X X X X Extracts X X X X X X X X Extracts X X X X
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