Treatment of preliminary & preoperative expenses
This query is : Open
12 April 2016
Dear All,
I'm preparing accounts of a company which is incorporated in the year 2012 but now it has established it's business and having preliminary and pre operative expenses.
My query is how should i recognise it in the accounts as per applicable Standard...
Please help.
13 April 2016
Hi,
With regard to your Query,
As per AS - 26, Preliminary expenses should be written-off in the Ist year of Incorporation of a Company, and in order to comply with the income tax Act Deferred Tax should be calculated for the same.
With regard to your Query,
As per AS - 26, Preliminary expenses should be written-off in the Ist year of Incorporation of a Company, and in order to comply with the income tax Act Deferred Tax should be calculated for the same.
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28 April 2016
What if i want to capitalize it?
28 April 2016
In order to capitalization conditions of AS 10 or AS 26 should be met i.e. either it should be directly in relation to a fixed asset or it should meet the definition of intangible asset.
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28 April 2016
Thank You Verry Much. :-)
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