09 March 2020
Our company has incurred expenses before commencement of business. and our consultant has posted that expenses in all fixed assets proportionately. is this right accounting treatment? if not than what is the right accounting treatment of Pre-operative expenditure? Please Guide on this.
22 May 2020
I think all expenses the benefit of which is less than one year should be debited to PL and all expenditures which are for long term period should be capitalised in BS.
CAclubindia
