Capitalisation of preoperative exp.?

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CA Saurabh Gupta (Querist)
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22 December 2008 Hello Friends , would you suggest me that how can we bifurcate a Particular pre operative exp. as a Capital exp. or Revenue exp.,Is all the pre operative exp. are capitalised .
suppose if we take an e:g like whether salary of a/cs deptt. during Construction of unit is revenue / capital pre operative exp. and whats the treatment of this exp,

CA R N Mohil

CA R N Mohil (Expert)
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23 December 2008 All the exepenses which is direcly related to the assets should be added to the such assets. Indirect expenses like salary of account department should be allocated propotionately.