13 July 2013
If a newly formed company has not started any business yet, how shall it treat its priliminary expenses as per the revised schedule VI? whether 1/5th of such amount should be w/o in P/L A/c or not? And if the company is not supposed to start the business in current F.Y. also, should the amount to be defferred next year be shown under current asset or the full amount should be shown under non-current assets?
Charge to the P&L if the company has commenced the business or else shown under the head current asset if your are going w/o within 12 Months or else under Non-Current Asset.
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