Preoperative expenses treatment in accounts and income tax

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kavitha (Querist)
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26 June 2012 Manfacturing company,incorporated in 1994 and started commercial production in 2007. rent, salaries, r & d,raw material purchases( on them vat, excise duty)business promotion exp etc. how to treat them in accounts and income tax. as per revised AS 26 there is no treatment for preoperative expenses. correct me if i am wrong.

Soumitra Basu

Soumitra Basu (Expert)
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27 June 2012 The entire preoperative expenses shall be divided between the existing asset of the company as on the date of starting commercial production.