AS-506

AS-506 refers to a set of accounting standards established by the Institute of Chartered Accountants of India (ICAI) that focuses on accounting for intangible assets. Intangible assets are non-physical assets like patents, trademarks, and goodwill. AS-506 outlines how these assets should be recognized, measured, and reported in financial statements, ensuring transparency and consistency in how companies manage and disclose their intangible resources. This standard helps stakeholders understand a company's true value, as intangible assets can significantly affect its market position and financial health.