Accounting standard 13
This query is : Resolved
27 June 2008
Hai to all,
The company has paid RS 50,000 for drafting and modification of share agreement.Should it capitalise or charge to revenue?
The company has paid RS 50,000 for drafting and modification of share agreement.Should it capitalise or charge to revenue?
Amit Bajaj
(Expert)
27 June 2008
Your query need some more background, however based on what you have written
1)If it is part of share issue expense then it has to be charged off against share premium
2) If it is for the purpose if investment in other Company then it has to be taken to the cost of Investment as it is directly related to Investment in the company and satisfy the definition of cost under AS 13
1)If it is part of share issue expense then it has to be charged off against share premium
2) If it is for the purpose if investment in other Company then it has to be taken to the cost of Investment as it is directly related to Investment in the company and satisfy the definition of cost under AS 13
S.Srinivasaraghavan
(Expert)
27 June 2008
Assuming that the expenditure is prior to incorporation, it is in the nature of preincorporation expenditure.
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