15 April 2011
Sir As per AS 26, Intangible Assets, Preliminary Expenses incurred by entity should be written off as soon as it is incurred. So,does it mean that we have to prepare profit & loss A/c for the periods before the entity comes into Existence ? How can be this done ? Please Clarify bcoz we usually don't prepare such P/l A/c & write off preliminary Exp. in 5 years from the year the entity come into existence.
CAclubindia
