Question

Which Accounting Standard (AS) defines an intangible asset, as an identifiable, non-monetary, without physical existence and held for use in the production or supply of goods or services for rental to others or for administrative purposes?

• A. AS 26
• B. AS 27
• C. AS 28
• D. AS 29

Hint:

Think of the standard titled "Intangible Assets". Goodwill, patents and trademarks come under it.

Answer 1

The Correct Option is A

Step 1: Understand what the question asks.
The question gives the definition of an intangible asset. It is an identifiable, non-monetary asset without physical existence. We need the Accounting Standard that deals with such assets.

Step 2: Recall the list of Accounting Standards.
Goodwill, patents, trademarks, copyrights and licences are intangible assets. In the Indian standards, the standard on Intangible Assets is AS 26. Its full title is "Intangible Assets".

Step 3: Check option 1 (AS 26).
AS 26 deals with intangible assets. It explains how to recognise, measure and amortise them. So option 1 is CORRECT.

Step 4: Check option 2 (AS 27).
AS 27 is "Financial Reporting of Interests in Joint Ventures". It has nothing to do with the definition of intangible assets. So option 2 is WRONG.

Step 5: Check option 3 (AS 28).
AS 28 is "Impairment of Assets". It tells how to test whether an asset is carried above its recoverable amount. It does not define intangible assets. So option 3 is WRONG.

Step 6: Check option 4 (AS 29).
AS 29 is "Provisions, Contingent Liabilities and Contingent Assets". It is about obligations, not intangible assets. So option 4 is WRONG.

Final Answer:
The standard that defines an intangible asset is AS 26.
\[ \boxed{\text{AS 26}} \]