in one my clients accounts, pre operative expense of Rs 12000 was capitalised along with fixed assets and depreciation was charged on the total amount in the next years. is'nt it wrong? how should we treat it?
10 June 2011
Thanks sir.. But it is Prov for Audit fees for previous year. this has been capitalised. should it not be w/o as revenue in same year. if it has not been w/o in tht yr nor in the next yr. what should we do now?
10 June 2011
Actually it should be written off in same year if not then next year if not then write off in this year...and show as prior period expense
CAclubindia
