Accounting of roc fees paid to increase authorised capital

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2012 My client has paid ROC fees to increase the authorised capital. same has been shown as advance in asset side on 31st march.

As the company is going to issue share on 10th of may they are saying they will adjust it with share premium.

Please tell the correct accounting treatment of the expense. and please give the reference of Accounting standard or companies act.

Thanks in Advance

Regards
Piyush

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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05 May 2012 The fees cannot be adjusted with share premium. It has to either to be expensed out or capitalised and written off in 5 equal annual installments.

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2012 Sir,

Thanks for replying back...can you please share reference of any section or any AS.

As i tried to find out the reference of any section or companies etc but nothing is clearly mentioned.

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