As per AS-26 Intangible assets like goodwill should be written off.

As per AS-26 (Accounting Standard on Intangible Assets), goodwill and other intangible assets must be amortized over their useful life.

The key provisions are:

Amortization Period: Intangible assets should be amortized on a systematic basis over the best estimate of their useful life. The amortization should begin when the asset is available for use.

10-Year Presumption: There is a rebuttable presumption that the useful life of an intangible asset will not exceed 10 years from the date it becomes available for use. This means unless there is strong evidence to support a longer period, the maximum amortization period should be 10 years.

"As early as possible" principle: The standard encourages writing off intangible assets as early as possible to follow the principle of conservatism, ensuring that assets are not overvalued on the balance sheet.

The correct answer combines all three elements:

• Write off as early as possible (conservatism)
• Should not exceed estimated useful life (matching principle)
• Normally capped at 10 years (AS-26 presumption)

While the presumption can be rebutted in exceptional circumstances with proper justification and disclosure, the normal maximum period is 10 years, making Option 3 the most accurate representation of AS-26 requirements.