Section 4 in The National Commission for Minority Educational Institutions (Annual Statement of Accounts) Rules, 2006
4. Intangible Assets. - Patents and copy rights, E Journals and Computer Software are grouped under Intangible Assets.
4.1Patents. - The expenditure incurred from time-to-time (application fees, legal expenses etc.) for obtaining Patents is temporarily capitalized and shown as part of Intangible Assets in the Balance Sheet. If applications for patents are rejected, the cumulative expenditure incurred on the particular patent is written off to the Income & Expenditure Account in the year the application is rejected.The expenditure on Patents granted is written off over a life of 9 years on a conservative basis.4.2Electronic Journals (E-Journals) are separated from Library Books in View of the limited benefit that could be derived from the on-line access provided. E-journals are not in a tangible form, but temporarily capitalized and in view of the magnitude of expenditure and the benefit derived in terms of perpetual knowledge acquired by the Academic and Research Staff; Depreciation is provided in respect of E-journals at a higher rate of 40% as against depreciation of 10% provided in respect of Library Books.4.3Expenditure on acquisition of software has been separated from computers and peripherals, as apart from being intangible assets, the rate of obsolescence in respect of these is very high. Depreciation is provided in respect of software at a higher rate of 40% as against depreciation of 20% provided in respect of Computers & Peripherals.
