In cases, where an expenditure incurred on any of the activities mentioned in Schedule VII, is of revenue nature, the same should be charged as an expense to the statement of profit and loss.
In case the expenditure incurred by the company is of such nature which may give rise to an ‘asset’, the company needs to analyze whether the expenditure qualifies the definition of the term ‘asset’ as per the Framework i.e. whether it has control over the asset and derives future economic benefits from it.
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