Which accounting standard is applicable for recognizing intangible assets?

AS-26 is the accounting standard applicable for recognizing intangible assets.

This standard prescribes the accounting treatment for intangible assets such as patents, copyrights, trademarks, computer software, licenses, franchises, and goodwill (when not acquired in a business combination).

AS-26 specifies that an intangible asset should be recognized only when:

• It is probable that future economic benefits attributable to the asset will flow to the enterprise
• The cost of the asset can be measured reliably

The standard also provides guidance on initial measurement, subsequent measurement, amortization, and disclosure requirements for intangible assets.

The other options cover different areas:

• AS-32 deals with presentation and classification of financial instruments
• AS-25 deals with interim financial reporting
• AS-01 deals with disclosure of accounting policies

Therefore, Option 3 (AS-26) is correct.