Pre-operative expenses

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V.S.HARISH

V.S.HARISH (Querist)
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20 August 2008
EXACT DEFINITION OF PRE-OPERATIVE EXPENSES
Disclosure in Balance Sheet/treatment

V.S.HARISH

V.S.HARISH (Querist)
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20 August 2008 pl do treat the matter as very urgent

Azmathullah Khan

Azmathullah Khan (Expert)
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21 August 2008 Revenue expenses incurred before the incorporation of company will be treated as preoperative or preliminery expenses

It should be shown in Assets side of balance sheet and the written amount shout be deducted 14 equal installment annually.

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V.S.HARISH

V.S.HARISH (Querist)
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21 August 2008 What is the treatment for expenses incurred from the date of incorporation upto the date of Commercial
Billing or Invoicing

I think this sould be treated as Pre-Operative expenses.

Kinldy suggest me

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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07 October 2008 Your assumption is correct. such expenses incurred during the period of installation of fixed assets should be capitalised on a suitable basis.