Monday, December 12, 2011

Accounting treatment of patent maintenance fees?

If patent fees along with the legal cost are capitalized, how do you account for the patent maintenance fees paid?|||Maintenance fees like renewal fees are expensed off as incurred. They are not capitalised since they don't add value to the patent. An analogy is repair and maintenance of machinery. They're expensed off to the income statement as and when incurred.

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