30 April 2011
What is the treatment/disclosure of exp. incureed by a Pvt. Ltd. Company on Incorporation . and now where Pre operative expenses to be shown as per new schedule VI of companies act. please suggest me accoding to AS 26 and as IT Act.
03 May 2011
As regards to New Schedule VI, there is no difference as such for disclosing pre-operative expenses. They shall be disclosed under the head "Miscellaneous Expenses to the extent not written off or adjusted" These expenses shall be written off in 5 equal annual installments in the books of accounts.
Regarding the treatment in IT Act, the same treatment, i.e. write off in 5 equal annual installments, as per Section 35D.
- CA. Amol G. Kabra
Querist :
Anonymous
Querist :
Anonymous
(Querist)
07 May 2011
Dear Amol Ji I am talking about NEW Format of Balance Sheet specified by ROC for Companies. and please reply the answer with reference to Accounting standard .