It is to request you all for reply of my question stated below: “Company A” grants license to “Company B” to sell its products in exchange of license fee to be paid to “Company A”.
All transactions of “Company B” will be reported to “Company A”, i.e. “Company B” will be perform operations under the control of “Company A”.
How will both the companies account for this license in their books?
Thanking you in anticipation. Regards Waliullah CA (Module D) Institue of Chartered Accountants of Pakistan (ICAP)