03 September 2007
Hello, I read Mr. samish's query posted on 26/08/07 regarding pre-operative expenses, and also response to this query posted on 27/8/07.I have doubt in case of treatment of pre-operative expenses which is of a revenue nature.As I understand AS -26(para 56), it should not be amortised over 3-5 years. It has to be written off in the year in which it is incurred. Please clarify on the same.
04 September 2007
Accounting standard provide the guide lines to prepare accounts according to law, if any departure from that should be mentioned in NOTES of accounts with reason. along with these in directiors responsibility statement it may be reported.
CAclubindia
